Document:

Contract No 77/2011

Date of signature: 11.24.2011

   

	THE SELLER	
THE BUYER :

	  	  
	
UralDial LLC

	
The company "IsoRay Medical Inc."

	  	  
	
Juridical address: 620042, Russia,

Sverdlovskaya Region, Ekaterinburg, Industry

Street 28, Office 138

	
350 Hills Street, Suite 106

Richland, WA 99354-5411 USA

	  	  
	
Post address: 620028, Russia, Sverdlovskaya

Region, Ekaterinburg, Kirova Street 28/1

	  

Hereinafter referred to as the Parties of the Contract.

 

1. SUBJECT OF THE CONTRACT

The Seller shall sell and the Buyer shall buy radioactive preparation Cesium-131 (hereinafter referred to as Goods) in accordance to specification provided in Appendix 1 to this contract.

 

2. CONTRACT DURATION AND DELIVERY TERMS

2.1 The Goods under the Contract shall be delivered from 01 December 2011 through 31 December 2012 in the Seller’s non-returnable type A transport packaging by air [**] (INCOTERMS 2000). The delivery terms can only be extended by mutual consent of the Parties in writing.

2.2 The date and time of the Goods calibration is 12:00 p.m. local time in the airport of departure on the date of the shipment plus 4 days and 12 hours (“Calibration Date”).

2.3 The Seller is responsible for delivery of the Goods to the Buyer at 12:00 pm local time in the designated airport of delivery on the first Monday following the date of shipment.

2.4 When Seller becomes aware that delivery of the Goods will be delayed, the Seller shall notify the Buyer about such delay by fax, phone or electronic mail no later than five (5) days prior to the transfer of the Goods to the first shipper.

2.5 Ownership of the Goods shall be transferred to the Buyer [**].

2.6 The Buyer shall provide the Seller with the order forecast no later than 30 days prior to date of delivery. Every order for Goods shall be delivered according to the Buyer’s separate written purchase order sent to the Seller not later than 10 (ten) days before the planned date of the Goods delivery. The ordered amount of Goods can be up to [**] less than the forecasted amount.

2.7 The order shall contain the following information:

	
-

	
Contract No.;

	
-

	
activity of the ordered isotope;

	
-

	
designated airport;

	
-

	
name and address of the consignee of the Goods

	
-

	
date and time of delivery.

  

[**]Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

      

  

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2.8 Seller shall individually nominate the forwarder at the border and shall send by facsimile or electronic mail the copies of the Air Way Bill (AWB), Dangerous Goods Declaration, Invoice, Packing Slip and Certificate of Quality to the Buyer on the day of the Goods departure.

3. PURCHASE PRICE AND CONTRACT VALUE

3.1 The unit price of the Goods (one lot) shall be [**].

For the Goods made by Open joint-stock company «Institute of nuclear materials» (Zarechny, Sverdlovsk region, 624250, Russia) One lot shall be one Curie (1 Ci) as calculated on the calibration date and time.

For the Goods made «State Scientific Center- Research Institute of Atomic Reactors» (Dimitrovgrad, Ulianovsk region, 433510, Russia) one lot shall be one Curie (1 Ci) plus thirty five minus zero percent (+35%-0%) as calculated on the measurement date and time. The measurement date and time shall be not sooner than the calibration date and time minus five days.

For the purpose of customs clearаnce it is determined, that cost of the non-returnable transport packaging set of type A (used by «State Scientific Center- Research Institute of Atomic Reactors» (Dimitrovgrad, Ulianovsk region, 433510, Russia)) shall be one hundred US dollars ($100.00), the cost being included into cost of the Goods and is not paid separately. The quantity of non-returnable transport packaging of type A is one piece per delivery.

3.2 The unit price of the Goods is based on the minimum order volume of [**] Ci per month as averaged over any consecutive two month period.

3.3  Solely for the purposes of ascertaining a total contract value but subject to actual delivery of Goods to Buyer as set forth herein, the contract value for the period of its duration is [**] for the quantity of the Goods delivered in the amount of eleven hundred (1100) Ci of Cs 131. The above mentioned quantity of Goods and contract value are considered as maximum values only, whereas the actual quantity of Goods and the contract value will be based on the Buyer’s written purchase orders.

3.4 Parties agree that if the minimum order volume increases to twenty five (25) Ci per week the unit price of the Goods shall be [**] per Ci and if the order volume increases to thirty (30) Ci per week the unit price of the Goods shall be [**] per Ci.  The Buyer shall provide 2 months advance written notification to Seller of an increase in the minimum order volume.

4. PAYMENT

4.1 The payment for the delivered Goods shall be executed by the Buyer within 30 calendar days from the Goods’ delivery date.

4.2 The payment shall be made in US dollars via wire transfer to the bank account of the Seller, after the Seller provides the following documents to Buyer:

-certificate of quality of the Goods

-invoice

-shipping paperwork

 

[**]Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

  

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4.3 The bank account information of the Seller is:

 

UralDial, LLC, 620042, Russia, Sverdlovskaya Region, Ekaterinburg, Industry Street, 28, Office 138

 

VAT-number 6671202119

 

Beneficiary Institution

 

[**]

 

Intermediary Institution

 

[**]

 

4.4 The bank account information of the Buyer is:

 

The Company “IsoRay Medical Inc.”

 

350 Hills Street, Suite 106

 

Richland, WA 99354-5411 USA

 

Bank Information:

 

[**]

4.5 The date of the payments for the goods is the date of the initiation of the wire transfer by the Buyer. Buyer shall make the payment against the Seller's Invoice and notify the Buyer within twenty four (24) hours about the number and date of the wire transfer and the name and address of the bank which made the transfer. The Contract number and the Invoice number must be indicated in the outgoing payment-transfer document.

4.6 All expenses and commissions of the Buyer’s Bank are responsibilities of the Buyer. Other expenses and commissions of all other Banks are responsibilities of the Seller.

4.7 In the event of late payments, the Buyer is responsible for a late payment fee in the amount of [**] for each day past the payment due date not to exceed [**] of the invoice amount for the lot of Goods for which payment is late.

5. QUANTITY OF THE GOODS AND QUALITY

5.1 The quality of the Goods shipped by the Seller shall comply with the Buyer Specifications as provided in Appendix 1 to this contract.

5.2 The Certificate of Quality shall be attached to each description of the Goods in a lot for each shipment.

5.3 The quantity of the Goods delivered to the Consignee shall meet the requirements specified in the Purchase Order by the Buyer. The quantity of the Goods shall be measured by Seller with an error of no more than [**] of the specified quantity and shall be the amount on the Calibration Date.

6. PACKING AND LABELING

6.1 The Goods shall be packed into a Type-A Package Design, which is provided by the Seller. The Type-A Package Design is a non-returnable package.

6.2 The Seller shall label the Type-A Package Design in conformity with the ICAO and IATA regulations and the IAEA safety standards, Safety series No. 6 (1990).

  

[**]Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

  

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6.3 The Seller is responsible for the safety of the package and compliance with all applicable laws.

7. SHIPMENT AND TRANSPORTATION

7.1 The Seller or its appointed person shall inform the Buyer in writing of the Good’s readiness for shipment no later than 2 days before the shipment.

7.2 Within one working day after the shipment is transferred to the air carrier the Seller or its appointed person shall provide the Buyer via fax/cable/e-mail with the following information:

 

- date of shipment;

- Contract No;

- denomination of Goods;

- quantity of Goods;

- quantity of packaging;

- flight No. and Airway Bill No.

7.3 In addition to the above, the Seller or its appointed person shall provide the Buyer a copy of the Shipping Specification, Commercial Invoice, Shipper’s Declaration for Dangerous Goods (DGD), Notification on Shipments of Radioactive Materials (DGN) Quality Certificate (originals included with the shipment) and any other required or necessary documentation to assure the customs clearance of the goods by the Buyer.

7.4 According to this contract Producers and Shippers are Open joint-stock company «Institute of nuclear materials» (Zarechny, Sverdlovsk region, 624250, Russia), «State Scientific Center- Research Institute of Atomic Reactors» (Dimitrovgrad, Ulianovsk region, 433510, Russia).

The indicated entities shall draw up and provide the Seller with all documents, necessary and required for customs clearance, including the packing list, specifications, certificate of conformity, declaration of dangerous goods, as well as other documentation.

8. ACCEPTANCE OF THE GOODS, CLAIMS

8.1 The Goods are considered delivered by the Seller or the Shipper and accepted by the Buyer with respect to quality and quantity in accordance with the Certificate of Quality and Shipping Specifications including an invoice.

8.2 In case of nonconformity of the Goods quantity or quality to the documents referenced in Section 8.1 above or any other nonconformity, (e.g. damage or loss in transit), the Buyer shall inform the Seller no later than ten days after the receipt of the defective Goods by the Buyer.

8.3 Claims in respect of the Goods quality and quantity shall be accompanied with a written statement drawn up at the place of destination with the participation of the Seller’s representatives and quality control department.

8.4 The Claim must specify:

-           the numbers and dates of the following documents: the Contract, the Purchase Order, the AWB, the Packing Slip and the Certificate of Quality;

-           information on the integrity of the Type-A Shipping package and its internal contents;

  

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-           detailed results of the analytical measurements including analysis methods used;

-           the Buyer's conclusions regarding failure to meet the quality and/or quantity requirements of the Goods;

  the cost calculation of a missing quantity of the Goods or the Quantity that cannot be used in production.

The Claim must be signed by the Buyer.

Each claim shall be provided in English and Russian.

One copy of the claim shall be sent to the Seller via express mail and another copy shall be sent via fax or electronic mail.

8.5 Seller shall confirm the Claim receipt via fax or electronic mail and issue a reply no later than 7 (seven) business days after the Claim receipt.  The reply must be sent in the same manner as the Claim, as described in Section 8.3 above.

8.6 Other than with respect to Goods which are damaged in transit by the Shipper or delayed beyond the time for delivery as required by Section 2.3 as a result of Shipper’s sole actions alone, the Buyer shall pay only for the Goods actually received that can be used in production. Payment amounts shall be based on the corrected invoice provided by the Seller, as adjusted for failures in quantity and quality described in Section 8.2 above. The copy of the corrected invoice shall be sent to the Buyer via fax or electronic mail.

8.7 Notwithstanding that title to the Goods does not transfer to Buyer until delivery is received by Consignee of Buyer[**].

9. TERMINATION

9.1 Buyer may terminate this Contract upon 5 days written notice to Seller, upon failure to deliver the Goods meeting the quality and quantity specifications set forth in Section 8.1 above, requested by Buyer for shipment within 7 days of the Monday scheduled for delivery over any consecutive four (4) week period regardless of the reason delivery has not occurred whether as a result of delays caused by a shipper, closure of reactor facilities, or any other factors outside control of the Buyer causing the delay in receipt of the Goods.

9.2 Seller may terminate this Contract upon 5 days written notice if Buyer fails to pay any Invoice within 10 days of the due date, provided that no invoice involving a shipment subject to a Claim shall be due until after such claim is either mutually resolved by the Parties or settled by Arbitration under Section 10.

10. ARBITRATION

All disputes or differences, which arise out of or in connection with the Contract, shall be settled by means of negotiations between the Parties. If the Parties can not settle any such dispute or differences within 21 days from beginning negotiations, then such dispute or difference shall be subjected to settlement, jurisdiction of ordinary courts being excluded, by arbitration conducted in accordance with the International Commercial Arbitration Court at the Chamber of Commerce and Industry of Russian Federation in Moscow in compliance with the rules and procedure of the said Court and in compliance with the Laws of Russia.

The award of the Court is final and binding upon both Parties.

   

[**]Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

  

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11. MISCELLANEOUS PROVISIONS

11.1 This Contract shall commence on the date of its signing by the authorized representatives of the Parties and unless terminated pursuant to Section 9 shall remain in effect until December 31, 2012. The contract is extendable by mutual consent of the parties in writing.

11.2 The Seller applies all reasonable efforts to ensure availability of supply of the Goods from 2 (two) reactor facilities at all times.

11.3 The Seller ensures supply of the Goods to the Buyer on exclusive basis regardless of the reactor facility used in the Goods production.

11.4 Any changes and/or appendixes to the Contract are valid only if they are made in writing and signed by the duly authorized representatives of the Parties.

11.5 The Contract shall be considered legally binding if provided by a facsimile transmission.

11.6 After signing the Contract all preceding negotiations and correspondence connected with this Contract is considered annulled.

11.7 Ekaterinburg is considered to be the place of signing the Contract.

11.8 This Contract is originally drafted and signed in English and Russian. Both the English and Russian versions of the Contract are of equal force.

	
THE SELLER

	  	
THE BUYER

	 
	  	  	  	 
	
UralDial LLC

	  	
The company "IsoRay Medical Inc."

	 
	  	  	  	 
	  	  	
350 Hills Street, Suite 106

	 
	
Juridical address: 620042, Russia,

	  	
Richland, WA 99354-5411 USA

	 
	
Sverdlovskaya Region, Ekaterinburg, Industry

	  	  	 
	
Street 28, Office 138

	  	
Phone: (509) 375-1202

	 
	  	  	  	 
	  	  	
E-mail: : isotope@isoray.com

	 
	
Post address: 620028, Russia, Sverdlovskaya Region, Ekaterinburg, Kirova Street 28/1

	  	  	 
	  	  	  	 
	
Phone: (343) 270-75-29

	  	  	 
	  	  	  	 
	
Fax: (343) 246-91-56

	  	  	 
	  	  	  	 
	
E-mail: dpbugaev@gmail.com

	  	  	 
	  	  	  	 
	
Signed by:

	  	Signed by:	 
	  	  	  	 
	

	  	

	
12/05/2011

	 
	
D.P. Bugayev, CEO

	  	
Dwight Babcock, СЕО

	 

   

  

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ATTACHMENT 1 to the Contract 77/2011 from 11.24.2011

Technical quality Requirements for the radioactive preparation of Cs-131

Radiochemical Purity of the Product:

Required activity ratios per calibration date:

[**] Cs-131

Cs-132/Cs-131:                          [**]

Cs-134/Cs-131:                          [**]

Cs-136/Cs-131:                          [**]

Cs-137/Cs-131:                          [**]]

Sum of all other gamma emitters: [**]

Physical form of the product:

Dried product with solids content of [**] mL per shipment

Chemical form of the product:

[**] of Cesium. There are no requirements for the determination of the specific chemical composition of the Cesium salt.

Signature

	

	
12/05/2011

	   
	
Dwight Babcock, СЕО

	 

 

	

	  
	
D.P. Bugayev, CEO

 

[**]Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

  

Page 7/7Exhibit 10.1

[FORM OF]

DEFERRED STOCK UNIT AWARD AGREEMENT

DEFERRED STOCK UNIT AWARD AGREEMENT dated as of the __ day of ________ 20__ (the “Award Agreement”), by and between Redwood Trust, Inc., a Maryland corporation (the “Company”), and ______________, an [employee/director] of the Company (the “Participant”).

 

Pursuant to the 2002 Redwood Trust, Inc. Incentive Stock Plan (the “Plan”), the Compensation Committee (the “Committee”) has determined that the Participant is to be granted a Deferred Stock Unit award for shares of the Company’s common stock, par value $0.01 per share, on the terms and conditions set forth herein (the “Award”), and the Company hereby grants such Award.  This Award is being made in connection with a deferral of compensation by the Participant pursuant to the Redwood Trust, Inc. Executive Deferred Compensation Plan (the “Deferred Compensation Plan”) and the executed Deferral Election attached hereto as Exhibit A (the “Deferral Election”). Any capitalized terms not defined herein shall have the meaning set forth in the Plan or the Deferred Compensation Plan, as applicable.

 

1.           Number of Shares Awarded; Deferral Election.  This Award entitles the Participant to receive ______________ shares of the Company’s common stock, par value $0.01 per share (the “Award Shares”), upon expiration of the Restricted Period described below.

 

2.           Dividends.  Notwithstanding Section 7(3)(b) of the Plan, the number of Award Shares set forth in Section 1 shall not be adjusted to reflect the payment of regular cash dividends declared on the Company’s common stock during the Restricted Period.  The Participant will instead be entitled to dividend equivalent payments (“DERs”) with respect to the Award Shares pursuant to the Plan or the Deferred Compensation Plan and in accordance with the applicable Deferral Election.

 

3.           Vesting and Restricted Periods.  

	
  

	
(a)

	
         The Award shares shall vest on the following schedule:

 

  As of _________ __, 20__, 25%

 

  At the beginning of each subsequent calendar quarter, 6.25%;

 

  All Award shares shall be fully vested as of _________ __, 20__.

 

Award Shares that have become vested are referred to as “Vested Award Shares”.  The period from the date of this Award to the applicable date or dates specified for delivery of such shares is referred to as the “Restricted Period”.

(b)           No Award Shares shall be credited to Participant’s Deferral Account until they have become Vested Award Shares.  Vested Award Shares shall be delivered to the Participant at the time or times provided in the Deferral Election and the Deferred Compensation Plan (or any re-deferral election made in accordance with Section 409A and the terms of the Deferred Compensation Plan.  Vested Award Shares shall not be forfeited in the event of termination of employment but rather delivery of such shares shall continue to be governed by the terms of the Deferral Election and the Deferred Compensation Plan (or any re-deferral election made in accordance with Section 409A and the terms of the Deferred Compensation Plan).  [In connection with the delivery of Vested Award Shares to Participant, Participant and the Company agree that delivery of such Vested Award Shares shall be net of a number of such shares which shall be forfeited by Participant in order to satisfy the applicable tax withholding obligation relating to such delivery to Participant.]

(c)           Upon termination of employment with the Company for any reason other than death or Disability prior to expiration of the Restricted Period, any Award Shares not vested at the time of such termination shall become ineligible for crediting to Participant’s Deferral Account and shall be forfeited.  Upon termination of employment with the Company due to death or Disability prior to the expiration of the Restricted Period, any Award Shares not vested at the time of such termination shall immediately vest and be credited to the Participant’s Deferral Account and shall not be forfeited.

 

  

  

  

 

4.           At-Will Employment.  This Award Agreement is not an employment contract and nothing in this Award Agreement shall be deemed to create in any way whatsoever any obligation of the Participant to continue in the employ of the Company or on the part of the Company to continue the employment of the Participant with the Company.  It is understood and agreed to by the Participant that the Award and participation in the Plan or the Deferred Compensation Plan does not alter the at-will nature of Participant’s relationship with the Company (subject to the terms of any separate employment agreement Participant may have with the Company).  The at-will nature of Participant’s relationship with the Company can only be altered by a writing signed by both the Participant and the President of the Company.

 

5.           Notices.  Any notice required or permitted under this Award Agreement shall be deemed given when delivered personally, or when deposited in a United States Post Office, postage prepaid, addressed, as appropriate, to the Participant either at the Participant’s address set forth below or such other address as the Participant may designate in writing to the Company, and to the Company:  Attention:  General Counsel, at the Company’s address or such other address as the Company may designate in writing to the Participant.

 

6.           Failure to Enforce Not a Waiver.  The failure of the Company to enforce at any time any provision of this Award Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.

 

7.           Existing Agreements.  This Award Agreement does not supersede nor does it modify any existing agreements between the Participant and the Company[; provided that, all award agreements previously executed by the Company and the Participant which relate to Deferred Stock Unit awards shall be hereby amended to incorporate therein the provisions of Section 3(c) of this Award Agreement that relate to death and Disability].

 

8.           Governing Law.  This Award Agreement shall be governed by and construed according to the laws of the State of Maryland without regard to its principles of conflict of laws.

 

9.           Incorporation of Plan.  The Plan and the Deferred Compensation Plan are incorporated by reference and made a part of this Award Agreement, and this Award Agreement is subject to all terms and conditions of the Plan and the Deferred Compensation Plan as in effect from time to time.  Notwithstanding the foregoing, this Award Agreement is intended to comply with Section 409A of the Code and this Award Agreement, the Plan and Deferred Compensation Plan shall be interpreted in a manner consistent with such intent, and any provisions of this Agreement, the Plan or the Deferred Compensation Plan that would cause the Award to fail to satisfy the requirements for an effective deferral of compensation under Section 409A of the Code shall have no force and effect.

 

10.        Amendments.   This Award Agreement may be amended or modified at any time by an instrument in writing signed by the parties hereto.  Notwithstanding the foregoing, the Deferral Election shall be irrevocable and the dates specified for distribution of Vested Award Shares may not be modified after the date hereof except as otherwise permitted under Section 409A of the Code.

 

[Signature page follows.]

  

  

  

 

IN WITNESS WHEREOF, the parties have executed this Award Agreement on the day and year first above written.

	
REDWOOD TRUST, INC.

	  	  
	
By:

	
 

	  	
Martin S. Hughes

	  	
President & Chief Executive Officer

	  	
One Belvedere Place, Suite 300

	  	
Mill Valley, CA  94941

	  	  
	
The undersigned hereby accepts and agrees to all the terms and provisions of this Award Agreement and to all the terms and provisions of the Plan herein incorporated by reference.

	  
	  
	
[Insert Participant Name]

	
c/o Redwood Trust, Inc.

	
One Belvedere Place, Suite 300

	
Mill Valley, CA  94941

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