Document:

Exhibit 10.88

 

Employment Agreement

 

This Employment Agreement
(“Agreement”) is made in the State of Arizona by and between Thomas C. LaVoy (“Executive”) and IsoRay,
Inc. a Minnesota corporation (the “Company”).

 

WHEREAS, the Company is engaged
in the business of providing innovative solutions for the treatment of malignancies using medical isotopes (the “Business”);
and

 

WHEREAS, the parties desire
that the Company retain Executive under the terms and conditions set forth in this Agreement; and

 

WHEREAS, the parties desire
to express their mutual agreements, covenants, promises, and understandings in a written agreement;

 

NOW THEREFORE, in consideration
of the premises and the agreements, promises, covenants, and provisions contained in this Agreement, the parties agree and declare
as follows:

 

1.            Employment.
The Company hereby employs Executive and Executive accepts employment under the terms and conditions of this Agreement.

 

2.            Position
and Duties.

 

a.       Executive
will faithfully and diligently serve the Company to the best of his ability in his positions as Chief Executive Officer and Chairman
of the Board of Directors (the “Board”) and in the performance of such other duties and responsibilities as the Company
may assign to him.

 

b.       Executive
will devote his full professional time, attention, and energies to the performance of his duties for the Company, and will not,
during his employment under this Agreement, engage in any other business activity, whether or not for profit, except for passive
investments in firms or businesses that do not compete with the Company, without the advance written and signed consent of the
Company. Notwithstanding this Section 2(b), Executive will be permitted to serve as a director of not for profit and for
profit businesses that do not compete with the Company. In addition, Executive shall have until April 30, 2016 to provide services
on an as needed basis to his former employer to assist with his transition from that company so long as Executive does not devote
more than ten hours per week to this activity.

 

c.       Executive
warrants that during the term of his employment under this Agreement, he will not do any act or engage in any conduct, or permit,
condone, or acquiesce in any act or conduct of other persons, that he knew for should have known could cause the Company to be
in violation of any law or statute, and Executive agrees to indemnify and hold the Company harmless against any and all liabilities,
claims, damages, fees, losses, and expenses of any kind or nature whatsoever attributable directly or indirectly to a violation
of this warranty.

 

    	 	 	 

     

    

 

d.       The
Company acknowledges that Executive’s principal place of residence is Scottsdale, Arizona and that the Company shall not
require Executive to relocate his principal place of residence in furtherance of his employment; provided, however, that Executive
agrees and acknowledges that Executive will be expected to travel to Company locations regularly as part of his duties. More specifically,
the Company may impose a minimum number of days Executive shall be required to spend in Richland, Washington, subject to Executive’s
consent if greater than five (5) days per month.

 

e.       Executive
agrees to comply with the policies and procedures of the Company as may be adopted and changed from time to time, including without
limitation, those described in the Company’s employee handbook, Code of Ethics for Chief Executive Officer & Senior Financial
Officers, and Code of Conduct and Ethics. If this Agreement conflicts with such policies or procedures, this Agreement will control.

 

f.       As
an officer of the Company, Executive owes a duty of care and loyalty to the Company as well as a duty to perform such duties in
a manner that is in the best interests of the Company.

 

3.            Compensation
and Benefits. For and in consideration of all services rendered under this Agreement, the Company will compensate Executive
as follows:

 

a.       Salary.
During the term of Executive’s employment under this Agreement, Executive will be compensated on the basis of an annual salary
of $300,000, payable in accord with the Company’s standard payroll practices.

 

b.       Bonus.
In addition to Executive’s base salary (Section 3(a)), throughout his employment, Executive will be eligible for an
annual discretionary bonus as periodically established by the Board (the “Annual Bonus”), based upon metrics that will
be established by the Board in its sole discretion. If Executive becomes entitled to an Annual Bonus for any calendar year under
this Section 3(b), such bonus shall be paid to him by the Company within two and one-half (2-1/2) months after the end of
the calendar year in which Executive earned that bonus.

 

c.       Stock
Options. Executive shall be eligible to participate in and receive stock options as defined by the relevant plan. Executive
shall be issued 250,000 stock options as of the Effective Date (as defined below). The options granted will have an exercise price
equal to the fair market value on the date of grant as defined under the relevant plan and shall vest immediately.

 

d.       Expenses.
The Company will reimburse Executive for all reasonable and necessary expenses that Executive incurs in carrying out his duties
under this Agreement in accordance with the Company reimbursement policies as in effect from time to time, provided that Executive
presents to the Company from time to time an itemized account of such expenses in such form as the Company may require.

 

e.       Paid
Time Off. Executive shall be granted four (4) weeks of paid time off during each full calendar year worked by Executive. Such
paid time shall include time off for sickness, vacation, or personal reasons. The time or times during which leave may be taken
shall be by mutual agreement of the Company and Executive. Whenever possible, the Company agrees to accommodate and grant Executive’s
request for time. Executive may not borrow against future time. Unused paid time in any year during the term hereof requires approval
by the Company to be carried over to any subsequent year.

 

    	 	-2-	 

     

    

 

 

4.            Term/Termination
Of Employment.

 

a.       Initial
Term. Executive’s employment under this Agreement will commence on February 15, 2016 (“Effective Date”),
and will continue for a period of three (3) years (the “Initial Term”). Thereafter, this Agreement shall renew only
upon thirty (30) days written notice as provided in Section 4(b).

 

b.       Renewal.
Upon at least thirty (30) days written notice prior to the end of the Initial Term, and subject to the provisions for termination
set forth below, the term of Executive’s employment under this Agreement will extend thereafter for a period of one year
(the “Renewal Term”). Upon the expiration of such subsequent term and any term renewed hereunder, and subject to the
provisions for termination set forth below, the term of Executive’s employment under this Agreement will require thirty (30)
days written notice of renewal for each successive Renewal Term of one-year.

 

c.       Termination.
This Agreement and Executive’s employment may be terminated by any of the following events:

 

i.            Expiration
of the Initial Term or any Renewal Term without further renewal of the term;

 

ii.          Mutual
written agreement between Executive and the Company at any time;

 

iii.         Executive’s
death;

 

iv.         Executive’s
Disability which renders Executive unable to perform the essential functions of Executive’s job even with reasonable accommodation.
“Disability” means a physical or mental condition entitling Executive to benefits under the applicable long-term disability
plan of the Company or any of its Subsidiaries, or if no such plan exists, a “permanent and total disability” (within
the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986, as amended and the rules and regulations promulgated thereunder
(the “Code”)) or as determined by the Company in accordance with applicable laws. Notwithstanding the foregoing, to
the extent that (i) any payment under this Agreement is payable solely upon the Executive’s Disability and (ii) such payment
is treated as “deferred compensation” for purposes of Code Section 409A, Disability shall have the meaning provided
in Section 1.409A-3(i)(4) of the Treasury Regulations. “Subsidiary” means a corporation, partnership or other entity
of which a majority of the voting interests of such corporation, partnership or other entity are at the time owned directly or
indirectly through one or more intermediaries or Subsidiaries, or both, by the Company.

 

v.          By
the Company For Cause as defined in Section 4(d) below;

 

vi.         Resignation
by Executive without Good Reason as defined in Section 4(e) below;

 

    	 	-3-	 

     

    

 

 

vii.        Termination
without cause, which shall mean any termination of employment by the Company which is not defined in Section 4(c)(i) through
Section 4(c)(vi) above; or

 

viii.       Resignation
by Executive with Good Reason.

 

d.       Termination
For Cause. The Company may terminate Executive’s employment under this Agreement immediately upon the occurrence of any
of the following events (each, a “For Cause” termination):

 

i.          Executive’s
gross inattention to or neglect of, or gross negligence or incompetence in the performance of, duties assigned to him under this
Agreement;

 

ii.          Executive’s
acceptance of any other employment;

 

iii.         Executive’s
conviction by a court of or plea of guilty or nolo contendere to fraud, dishonesty, or other acts of misconduct in rendering services
on behalf of the Company;

 

iv.         Any
deliberate or unauthorized action or omission by Executive that causes or may cause the Company to breach obligations under any
contract;

 

v.          Executive’s
material breach of any covenant, promise, provision, or obligation of this Agreement.

 

e.       Voluntary
Termination. Executive may voluntarily terminate his employment hereunder by giving at least thirty (30) days prior written
notice to the Board of his intention to terminate employment. Such notice must specify the end of a calendar month as the termination
date. Notwithstanding the foregoing, if Executive voluntarily terminates his employment hereunder for Good Reason (as defined below)
Executive shall be entitled to the severance benefits payable under Section 5(b)(i) below. “Good Reason” shall
mean, without Executive’s express written consent a material, adverse change in the Executive’s title, authority, duties
or responsibilities (other than temporarily while Executive is physically or mentally incapacitated or as required by applicable
law). Executive cannot terminate his employment for Good Reason unless he has provided written notice to the Company of the existence
of the circumstances providing grounds for termination for Good Reason within twenty (20) days of the initial existence of such
grounds and the Company has had twenty (20) days from the date on which such notice is provided to cure such circumstances. If
the Company fails to cure the event giving rise to Good Reason within the twenty (20) day cure period, Executive may terminate
his employment for Good Reason, provided that if Executive does not terminate his employment for Good Reason within twenty (20)
days after the end of the Company’s twenty (20) day cure period, Executive will be deemed to have waived his right to terminate
for Good Reason with respect to such grounds.

 

5.            Company’s
Post-Termination Obligations.

 

a.           
Termination under Sections 4(c)(i), 4(c)(iii), 4(c)(iv), 4(c)(v) and 4(c)(vi).

 

    	 	-4-	 

     

    

 

 

i.            If
Executive’s employment terminates for any of the reasons set forth in Sections 4(c)(i), 4(c)(iii), 4(c)(iv),
4(c)(v) and 4(c)(vi) above, then the Company will pay Executive (1) all accrued but unpaid wages, based on Executive’s
then current base salary, through the termination date, (2) all approved, but unreimbursed, business expenses, provided that a
request for reimbursement of business expenses is submitted in accordance with the Company’s policies and submitted within
five (5) business days of Executive’s termination date, and (3) all earned and accrued but unpaid bonuses. Amounts payable
pursuant to this Section 5(a)(i) above shall be paid within thirty (30) days of the Executive’s termination date.

 

b.       Termination
Under Sections 4(c)(ii), 4(c)(vii) and 4(c)(viii).

 

i.            If
Executive’s employment terminates for any of the reasons set forth in Sections 4(c)(ii), 4(c)(vii) and 4(c)(viii)
above, then the Company will pay Executive (1) all accrued but unpaid wages through the termination date, based on Executive’s
base salary ; (2) the Monthly Compensation (as defined below) for each one month period for the longer of (A) twelve (12)
months and (B) the remainder of the then-current Initial Term or Renewal Term, as applicable; (3) all accrued but unpaid paid time
off through the termination date, based on Executive’s then current base salary; (4) all approved, but unreimbursed, business
expenses, provided that a request for reimbursement of business expenses is submitted in accordance with the Company’s policies
and submitted within five (5) business days of Executive’s termination date; and (5) all earned and accrued but unpaid bonuses.
Executive shall continue to participate in the Company’s current benefit programs on the same terms and conditions as active
employees and in accordance with the terms of those programs through the remainder of the then-current Initial Term or Renewal
Term, as applicable, to the extent permitted under the terms of those programs and applicable law. “Monthly Compensation”
shall be equal to the greater of (x) the average of the total monthly compensation reported on Executive’s tax returns and
attributed to Executive by the Company, which was paid to Executive by the Company for the two (2) years preceding year of the
date in which the termination occurred or (y) the preceding calendar year reported on Executive’s tax returns and attributed
to Executive by the Company but in each of this Section 5(b)(i)(x) or (y) adding back in contributions made to deferred
compensation plans and group insurance plans of the Company.

 

ii.          The
cash amounts or benefits payable under this Section 5(b) shall be paid ratably according to the regularly scheduled payroll
practices of the Company following the expiration of the Severance Delay Period, with the payments provided in subsections (1),
(3), (4) and (5) of Section 5(b)(i) payable within thirty (30) days, and the payments provided in Section 5(b)(i)(2)
to be paid over the relevant time periods specified in those subsections. “Severance Delay Period” means, except as
otherwise modified by the application of Section 13(b), the period beginning on the date of the Executive’s termination
of employment with the Company and ending on the thirtieth (30th) day thereafter. Notwithstanding the foregoing, in the event that
the Executive’s termination of employment occurs in connection with an exit incentive program or other employment termination
program offered to a group or class of employees, as defined under the Older Worker Benefit Protection Act, 29 U.S.C. Section 626,
the Severance Delay Period shall mean the period beginning on the date of the Executive’s termination of employment with
the Company and ending on the sixtieth (60th) day thereafter.

 

    	 	-5-	 

     

    

 

 

iii.         Except
as set forth in this Section 5(b), the Company shall have no other obligations to Executive for termination pursuant to
Sections 4(c)(ii), 4(c)(vii) and 4(c)(viii).

 

c.       The
Company’s obligation to provide the payments set forth in Section 5(a) and Section 5(b) above shall be conditioned
upon the following (the “Separation Conditions”):

 

i.           Executive’s
(or, in the case of Executive’s death or Disability, Executive’s estate or trustee, as applicable) execution prior
to the expiration of the Severance Delay Period (and the expiration of any applicable revocation period) of a separation agreement
in a form prepared by the Company, which will include a general release from liability so that Executive will release the Company
and its Subsidiaries from any and all liability and claims of any kind as permitted by law; and

 

ii.          Executive’s
compliance with the restrictive covenants (Sections 6-9) and all post-termination obligations, including, but not limited
to, the obligations contained in this Agreement.

 

iii.         If
Executive refuses to execute (or revokes) an effective separation agreement as set forth in Section 5(c) above prior to
the expiration of the Severance Delay Period (or if any applicable revocation period has not yet ended prior to such time), the
Company will not provide any payments or benefits to Executive under Section 5(a) and Section 5(b) until such separation
agreement is executed and becomes effective; provided that if the period during which Executive can execute an separation agreement
(or revoke a previously executed separation agreement) spans two calendar years, the payment will automatically commence in the
later of the two years, regardless of the year in which Executive executes the separation agreement. The Company’s obligation
to make the separation payments set forth in Section 5(a) and Section 5(b) shall terminate immediately upon any breach
by Executive of any post-termination obligations to which Executive is subject.

 

iv.         Except
as provided in this 5, following termination of Executive’s employment pursuant to Section 4, and except as provided
in Section 11 in the event of a Change of Control, the Company shall have no other obligations for compensation of Executive.

 

d.       Set-Off.
If Executive has any outstanding obligations to the Company upon the termination of Executive’s employment for any reason,
Executive hereby authorizes the Company to deduct any amounts owed to the Company from Executive’s final paycheck and/or
any amounts that would otherwise be due to Executive, including under Section 6 or Section 11, but only to the extent
such set-off is made in accordance with Treasury Regulation 1.409A-3(j)(4)(xiii). No other set-off shall be permitted under this
Agreement.

 

    	 	-6-	 

     

    

 

 

6.            Confidential
Commercial Information.

 

a.       Executive
acknowledges that he will be entrusted with price lists, customer lists, customer contact information, information about customer
transactions, development and research work, marketing programs, plans, and proposals, and data contained within internally employed
software, data bases, and computer operations developed by or for the Company (“Confidential Commercial Information”);
provided, however, that for the purposes of this Agreement Confidential Commercial Information does not include information (i) that
was publicly available prior to Executive’s disclosure or use thereof; or (ii) that Executive lawfully received from
some person who was not under any obligation of confidentiality with respect thereto; (iii) that becomes publicly available
other than as the result of any breach of this Agreement by Executive; or (iv) that is generally known to or readily ascertainable
by proper means by other persons who can obtain economic value from its disclosure or use. Executive acknowledges that Confidential
Commercial Information derives independent economic value, actual or potential, from not being generally known to, and not being
readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and that the
Company has made efforts that are reasonable under the circumstances to maintain the secrecy of Confidential Commercial Information.

 

b.       Executive
acknowledges that he has been instructed by the Company to, and agrees that he will, maintain the Company’s Confidential
Commercial Information in a confidential manner. During his employment, Executive will not, directly or indirectly, disclose any
Confidential Commercial Information to any person or entity not authorized by the Company to receive or use such Confidential Commercial
Information. After the termination of Executive’s employment, for whatever reason and by whatever party, Executive will not,
directly or indirectly, use or disclose to any person or entity any Confidential Commercial Information without the prior written
authorization of the Company.

 

c.       All
documents and other tangible property relating in any way to the business of the Company that Executive develops or that come into
his possession during his employment are the property of the Company, and Executive will return all such documents and tangible
property to the Company upon the termination of his employment, or at such earlier time as the Company may request.

 

d.       Executive
acknowledges that all of the commercially available software that the Company uses on its computer system that was not developed
specially by or for the Company is either owned or licensed for use by the Company, and that the use of such software is governed
strictly by the explicit terms and conditions of licensing agreements between the Company and the publisher of the software, and
Executive agrees to adhere to those terms and conditions. Executive will not copy, duplicate, download, transfer, or otherwise
make personal use of any software on the Company’s computer system without the Company’s express, written consent.

 

e.       Executive
represents that to the best of his knowledge, the performance of all the terms of this Agreement and of his duties as an employee
of the Company will not breach any agreement to keep in confidence any proprietary information that he acquired in confidence prior
to his employment under this Agreement, and that Executive has not entered into, and agrees that he will not enter into, any agreement
either written or oral in conflict with this Agreement. Executive represents that to the best of his knowledge, Executive has not
brought and will not bring with him to the Company or use in the performance of his responsibilities at the Company any materials
or documents of a former employer that are not generally available to the public, unless Executive has obtained express written
authorization from the former employer for their possession and use. Executive represents that he has delivered to the Company
a true and correct copy of any employment, proprietary information, confidentiality, or non-competition agreement to which he is
or was a party with any former employers, and that is or may be in effect as of the date hereof. Executive has been instructed
not to breach any obligation of confidentiality that he may have to any former employer, and agrees that he will not commit any
such breach during employment with the Company.

 

    	 	-7-	 

     

    

 

 

7.            Inventions
and Copyrights.

 

a.       Executive
acknowledges that, as a part of his duties, during his employment, he may develop discoveries, concepts, and ideas concerning or
relating to the Business, whether or not patentable, including without limitation processes, methods, formulas, and techniques,
as well as improvements thereof or know-how related thereto, and concerning any present or prospective activities of the Company
that are published before such discoveries, concepts, and ideas (“Inventions”).

 

b.       Executive
will fully disclose and will continue to disclose to the Company all Inventions that he makes or conceives, in whole or in part,
at this time or during his employment with the Company.

 

c.       Any
and all Inventions will be the absolute property of the Company or its designees and, at the request of the Company and at its
expense, but without additional compensation, Executive will make application in due form for United States patents and foreign
patents on such Inventions, and will assign to the Company all his right, title, and interest in such Inventions, and will execute
any and all instruments and do any and all acts necessary or desirable in connection with any such application for patents or in
order to establish and perfect in the Company the entire right, title, and interest in such Inventions, patent applications, or
patents, and also execute any instrument necessary or desirable in connection with any continuations, renewals, or reissues thereof
or in the conduct of any related proceedings or litigation.

 

d.       The
Company will own the copyright in all materials created by Executive relating to the Business and eligible for copyright (which
will be deemed work made-for-hire). The Company will have the right to apply for copyright registration, including any renewals
or extension, whether under the laws of the U.S. or any country having jurisdiction over the copyright. Executive agrees to execute
any documents necessary or appropriate for such registration. The Company will also own any trademark, service mark or trade name
created by Executive (alone or in conjunction with others) for the Company and used to identify any present or future product,
service, activity, operation, or function of the Company. The Company may obtain trademark or service mark protection of the Company’s
rights including, at the Company’s discretion, state, federal and international registration. The Company will own all right,
title, and interest in and to all results and the work product of Executive’s services for the Company (all of which will
be deemed proprietary), free of any reserved rights by Executive, whether or not specifically enumerated in this Agreement.

 

    	 	-8-	 

     

    

 

 

8.            Post-Employment
Restrictions.

 

a.       Following
the termination of Executive’s employment, for whatever reason and by whatever party, and during any Restrictive Period,
Executive will not, directly or indirectly, on his own behalf or on behalf of any other person or entity:

 

i.           enter
into or engage in any business that provides Competitive Products or Competitive Services within the Restricted Areas;

 

ii.          solicit
or accept orders for Competitive Products from any person or entity upon whom he called or with whom he had direct or indirect
contact on behalf of the Company and who at the time of such conduct is a customer or client of the Company;

 

iii.         solicit
or accept orders for Competitive Products from any person or entity who was a customer or client of the Company during his engagement
and who at the time of such conduct is a customer or client of the Company;

 

iv.         solicit
or accept orders for Competitive Products from any person or entity who at the time of such conduct is a customer or client of
the Company;

 

v.          encourage,
entice, induce, or influence, directly or indirectly, any person or entity not to do business with the Company;

 

vi.         encourage,
entice, induce, or influence, directly or indirectly, any person to terminate his or her employment with the Company; or

 

vii.        hire,
retain, or offer to hire or retain for the performance of any service in connection with the marketing, distribution, or sale of
any Competitive Product any person who at the time of such conduct is an employee of the Company or who was an employee of the
Company within the 180-day prior to such conduct.

 

viii.       solicit
or accept orders for Competitive Services from any person or entity upon whom he called or with whom he had direct or indirect
contact on behalf of the Company and who at the time of such conduct is a customer or client of the Company;

 

ix.         solicit
or accept orders for Competitive Services from any person or entity who was a customer or client of the Company during his engagement
and who at the time of such conduct is a customer or client of the Company;

 

x.          solicit
or accept orders for Competitive Services from any person or entity who at the time of such conduct is a customer or client of
the Company.

 

b.           The
Restrictive Periods are: (a) the 90-day period commencing on the termination of Executive’s employment with the Company
(“the First Restrictive Period”); and (b) the 90-day period commencing on the expiration of the First Restrictive
Period (“the Second Restrictive Period”); and (c) the 90-day period commencing on the expiration of the Second Restrictive
Period (“the Third Restrictive Period”); and (d) the 90-day period commencing on the expiration of the Third Restrictive
Period (“the Fourth Restrictive Period”).

 

    	 	-9-	 

     

    

 

 

c.       The
term of any Restrictive Period set forth in this Agreement will be tolled for any time during which Executive is in violation of
any provision of this Agreement and for any time during which there is pending any action or arbitration (including any appeal
from any final judgment) brought by any person, whether or not a party to this Agreement, in which action the Company seeks to
enforce this Agreement or in which any person contests the validity of such agreements and covenants or their enforceability, or
seeks to avoid their performance or enforcement.

 

d.       “Competitive
Products” means any supplies, equipment, products, goods, or services that are similar to or competitive with supplies, equipment,
products, goods, or services that the Company marketed, distributed, or sold during Executive’s employment with the Company.

 

e.       “Competitive
Services” means any services that are similar to any services that Executive performed for the Company during Executive’s
employment with the Company.

 

f.       The
Restrictive Areas are: (1) the area within a 10 air-mile radius of any location of the Company at which Executive performed
services during his employment under this Agreement; and (2) Maricopa County, Arizona; and (3) the state of Arizona;
and (4) the state of Washington; and (5) the Mountain Time Zone and the Pacific Time Zone of the United States; and (6) that
portion of the United States west of the Mississippi River; (7) the United States; and (8) any country in which the Company
is conducting business at the time of Executive’s separation from employment.

 

9.            Non-Disparagement.
Executive agrees that during the term of Executive’s services to the Company, and at any time thereafter, not to make or
communicate any comments or other remarks which are negative or derogatory to the Company or which would tend to disparage, slander,
ridicule, degrade, harm or injure the Company (or any business relationship of the Company) or any officer, partnership member,
or other employee of the Company or its affiliates.

 

10.          Remedies.

 

a.       The
parties expressly agree that, in the event of any failure by the Company to pay any wages to which Executive may become entitled
in connection with his employment in violation of Ariz. Rev. Stat. §§ 23-350 through 23-362, the amount of Executive’s
recovery will be limited to the amount of actual wages that the court or arbitrator determines to have been unpaid, and, notwithstanding
the provisions of Ariz. Rev. Stat. § 23-355, no greater amount. Executive hereby expressly waives any remedy that he
may have or that may later become available to his under Ariz. Rev. Stat. § 23-355 for any additional amounts.

 

b.       Any
breach of the duties and obligations imposed upon Executive by this Agreement would cause irreparable harm to the Company, and
the Company could not be fully compensated for any such breach with money damages. Therefore, injunctive relief is an appropriate
remedy for any such breach. Such injunctive relief will be in addition to and not in limitation of or substitution for any other
remedies or rights to which the Company may be entitled at law or in equity, including without limitation liquidated damages under
this Agreement.

 

    	 	-10-	 

     

    

 

 

11.          Change
of Control. Notwithstanding anything to the contrary in the Company’s existing or future incentive plans or any award
agreement granted to Executive thereunder, upon a Change of Control, all of Executive’s outstanding unvested equity-based
awards granted pursuant to the incentive plans, at Executive’s option, shall vest and become immediately exercisable and
unrestricted, without any action by the Board or any committee thereof. “Change of Control” shall mean the first of
the following events to occur after the Effective Date:

 

(a)          a
Person or one or more Persons acting as a group acquires ownership of stock of the Company that, together with the Company stock
held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of
the stock of the Company;

 

(b)          the
following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on
the Effective Date, constitute the Board and any new director (other than a director whose initial assumption of office is in connection
with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of
directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders
was approved or recommended by a majority of the directors then still in office who either were directors on the Effective Date
or whose appointment, election or nomination for election was previously so approved or recommended; and

 

(c)          a
Person or one or more Persons acting as a group acquires (or has acquired during the twelve (12) month period ending on the date
of the most recent acquisition by such person or persons) assets from the Company equal to or more than forty percent (40%) of
the total gross fair market value of all of the assets of the Company determined immediately prior to such acquisition.

 

For purposes of this Section
11,

 

(i)          “Person”
shall mean a “person” as defined in Section 7701(a)(1) of the Code, except that such term shall not include (A) the
Company (or any Subsidiary thereof), (B) a trustee or other fiduciary holding securities under an employee benefit plan of the
Company, (C) an underwriter temporarily holding securities pursuant to an offering of such securities, or (D) a corporation owned,
directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of
the Company.

 

(ii)           Stock
ownership shall be determined in accordance with the attribution rules of Section 318(a) of the Code.

 

(iii)         The
gross fair market value of an asset shall be determined without regard to any liabilities associated with that asset.

 

    	 	-11-	 

     

    

 

 

(iv)        A
“Change of Control” shall not be occur (A) by virtue of the consummation of any transaction or series of integrated
transactions immediately following which the holders of the common stock of the Company immediately prior to such transaction or
series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially
all of the assets of the Company immediately following such transaction or series of transactions, and (B) as a result of any primary
or secondary offering of Company common stock to the general public through a registration statement filed with the Securities
and Exchange Commission.

 

12.          Clawback.
Notwithstanding anything contained herein to the contrary, any amounts paid or payable to Executive pursuant to this Agreement
or otherwise by the Company, including, but not limited to, any equity compensation granted to Executive, may be subject to forfeiture
or repayment to the Company in accordance with Internal Revenue Code Section 409A and pursuant to the clawback policy as adopted
by the Board and as such may be amended by the Board from time to time, and Executive hereby agrees to be bound by any such policy.

 

13.          Compliance
with Code Section 409A.

 

a.           It
is intended that each payment or installment of payments provided under this Agreement is a separate “payment” for
purposes of Code Section 409A. 

 

b.           Notwithstanding
anything to the contrary herein, if the Company determines (i) that on the date of Executive’s “separation from service”
(as such term is defined under Treasury Regulation 1.409A-1(h)) or at such other time that the Company determines to be relevant,
Executive is a “specified employee” (as such term is defined under Treasury Regulation 1.409A-1(i)(1)) of the Company,
and (ii) that any payments to be provided to Executive pursuant to this Agreement are or may become subject to the additional tax
under Code Section 409A(a)(1)(B) or any other taxes or penalties imposed under Code Section 409A if provided at the time otherwise
required under this Agreement, then such payments shall be delayed until the date that is six (6) months after the date of Executive’s
“separation from service” (as such term is defined under Treasury Regulation 1.409A-1(h)) or, if sooner, the date of
Executive’s death.  Any payments delayed pursuant to this Section 13(b) shall be made in a lump sum
on the first day of the seventh month following Executive’s “separation from service” (as such term is defined
under Treasury Regulation 1.409A-1(h)) or, if sooner, the date of Executive’s death.  It is intended that Agreement
shall comply with the provisions of Code Section 409A so as not to subject Executive to the payment of additional taxes and interest
under Code Section 409A. In furtherance of this intent, this Agreement shall be interpreted, operated, and administered in a manner
consistent with these intentions.

 

c.           Notwithstanding
anything herein to the contrary, a termination of Executive’s employment shall not be deemed to have occurred for purposes
of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment
unless such termination is also a “separation from service” within the meaning of Code Section 409A, and for purposes
of any such provision of this Agreement, references to a “termination,” “termination of employment,” “termination
date,” or similar terms shall mean “separation from service.”

 

    	 	-12-	 

     

    

 

 

d.           For
the avoidance of doubt, the Company shall pay any amounts that are due under this Agreement following Executive’s termination
of employment, death, Disability or other event within the periods of time that are specified in this Agreement, provided, however,
that the Company, in its sole and absolute discretion, shall determine the date or dates on which any such payment shall be made
during such specified period.

 

e.           By
accepting this Agreement, Executive hereby agrees and acknowledges that neither the Company nor its Subsidiaries make any representations
with respect to the application of Code Section 409A to any tax, economic or legal consequences of any payments payable to Executive
hereunder.  Further, by the acceptance of this Agreement, Executive acknowledges that (i) Executive has obtained independent
tax advice regarding the application of Code Section 409A to the payments due to Executive hereunder, (ii) Executive retains full
responsibility for the potential application of Code Section 409A to the tax and legal consequences of payments payable to Executive
hereunder and (iii) the Company shall not indemnify or otherwise compensate Executive for any liability incurred as a result of
the failure of this Agreement to comply, in form or operation, with the requirements of Code Section 409A.  The parties agree
to cooperate in good faith to amend such documents and to take such actions as may be necessary or appropriate to comply with Code
Section 409A.

 

14.          Prevailing
Party’s Litigation Expenses. In the event of litigation between the Company and Executive related to this Agreement,
the non-prevailing party shall reimburse the prevailing party for any costs and expenses (including, without limitation, attorneys’
fees) reasonably incurred by the prevailing party in connection therewith.

 

15.          Withholding.
All amounts payable to Executive hereunder shall be subject to required payroll deductions and tax withholdings.

 

16.          Adjudication
of Agreement.

 

a.           If
any court or arbitrator of competent jurisdiction holds that any restriction imposed upon Executive by this Agreement exceeds the
limit of restrictions that are enforceable under applicable law, the parties desire and agree that the restriction will apply to
the maximum extent that is enforceable under applicable law, agree that the court or arbitrator so holding may reform and enforce
the restriction to the maximum extent that is enforceable under applicable law, and desire and request that the court or arbitrator
do so.

 

b.           If
any court or arbitrator of competent jurisdiction holds that any provision of this Agreement is invalid or unenforceable, the parties
desire and agree that the remaining parts of this Agreement will nevertheless continue to be valid and enforceable.

 

17.         Modification
Or Waiver Of Agreement. No modification or waiver of this Agreement will be valid unless the modification or waiver is in writing
and signed by both of the parties. The failure of either party at any time to insist upon the strict performance of any provision
of this Agreement will not be construed as a waiver of the right to insist upon the strict performance of the same provision at
any future time.

 

    	 	-13-	 

     

    

 

 

18.          Notices.
Any notices required or permitted under this Agreement will be sufficient if in writing and sent by certified mail to, in the case
of Executive, the last address he has filed in writing with the Company or, in the case of the Company, its principal office.

 

19.          Opportunity
To Consider Agreement; Legal Representation. Executive acknowledges that he has had a full opportunity to consider this Agreement,
to offer suggested modifications to its terms and conditions, and to consult with an attorney of his own choosing before deciding
whether to sign it.

 

20.          No
Rule Of Strict Construction. The language of this Agreement has been approved by both parties, and no rule of strict construction
will be applied against either party.

 

21.          Entire
Agreement. This Agreement contains all of the agreements between the parties relating to Executive’s employment with
the Company. The parties have no other agreements relating to Executive’s employment, written or oral. This Agreement supersedes
all other agreements, arrangements, and understandings relating to Executive’s employment, and no such agreements, arrangements,
or understandings are of any force or effect. The parties will execute and deliver to each other any and all such further documents
and instruments, and will perform any and all such other acts, as reasonably may be necessary or proper to carry out or effect
the purposes of this Agreement.

 

22.          Assignment
Of Agreement. Executive has no right to transfer or assign any or all of his rights or interests under this Agreement. The
Company may assign its rights and interests under this Agreement to any successor entity as part of any sale, transfer, or other
disposition of all or substantially all of the assets of the Company.

 

23.          Headings.
The descriptive headings of the paragraphs and subparagraphs of this Agreement are intended for convenience only, and do not constitute
parts of this Agreement.

 

24.          Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, each of which will be deemed an original, but all of
which together will constitute one and the same instrument.

 

25.          Choice
Of Forum. The parties agree that the proper and exclusive forum for any action or arbitration arising out of or relating to
this Agreement or arising out of or relating to Executive’s employment by the Company will be Maricopa County, Arizona, and
that any such action or arbitration will be brought only in Maricopa County, Arizona. Executive consents to the exercise of personal
jurisdiction in any such action or arbitration by the courts or arbitrators of Maricopa County, Arizona.

 

26.          Governing
Law. This Agreement will be construed in accord with and any dispute or controversy arising from any breach or asserted breach
of this Agreement will be governed by the laws of the State of Arizona, without reference to the choice of law principles thereof.

 

    	 	-14-	 

     

    

 

IN WITNESS WHEREOF, the parties have executed this Agreement on
the dates indicated at their respective signatures below.

 

DATED this 13th day of January, 2016.

 

	 	/s/ Thomas C. LaVoy
	 	Thomas C. LaVoy

 

DATED this 13th day of January, 2016.

 

	 	IsoRay, Inc., a Minnesota corporation
	 	 	 
	 	By:	/s/ Brien Ragle
	 	 	Brien Ragle
	 	Its:	CFO

 

    	 	-15-ex1-a.htm

Exhibit 10.01

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is entered into as of February 1, 2016, by and between NATURAL ALTERNATIVES INTERNATIONAL, INC., a Delaware corporation ("Borrower"), and WELLS FARGO BANK, NATIONAL ASSOCIATION ("Bank").

 

RECITALS

 

WHEREAS, Borrower is currently indebted to Bank pursuant to the terms and conditions of that certain Credit Agreement between Borrower and Bank dated as of November 1, 2014, as amended from time to time ("Credit Agreement").

 

WHEREAS, Bank and Borrower have agreed to certain changes in the terms and conditions set forth in the Credit Agreement and have agreed to amend the Credit Agreement to reflect said changes.

 

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree that the Credit Agreement shall be amended as follows:

 

1.     Section 1.1 is hereby deleted in its entirety, and the following substituted therefor:

 

"SECTION 1.1.     LINE OF CREDIT.

 

(a)     Line of Credit. Subject to the terms and conditions of this Agreement, Bank hereby agrees to make advances to Borrower from time to time up to and including January 31, 2019, not to exceed at any time the aggregate principal amount of Ten Million Dollars ($10,000,000.00) ("Line of Credit"), the proceeds of which shall be used to finance Borrower's working capital requirements. Borrower's obligation to repay advances under the Line of Credit shall be evidenced by a promissory note dated as of February 1, 2016, as modified from time to time ("Line of Credit Note"), all terms of which are incorporated herein by this reference.

 

(b)     Borrowing and Repayment. Borrower may from time to time during the term of the Line of Credit borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject to all of the limitations, terms and conditions contained herein or in the Line of Credit Note; provided however, that the total outstanding borrowings under the Line of Credit shall not at any time exceed the maximum principal amount available thereunder, as set forth above."

 

2.     Section 4.9 (b) is hereby deleted in its entirety, and the following substituted therefor:

 

"(b)     Current Ratio not less than 1.75 to 1.0 at each fiscal quarter end, with "Current Ratio" defined as total current assets divided by total current liabilities."

 

3.     Sections 5.2, 5.3, and 5.4 are hereby deleted in their entirety, and the following substituted therefor:

 

"SECTION 5.2. INTENTIONALLY OMITTED.

 

 

-1- 

 

 

SECTION 5.3. INTENTIONALLY OMITTED.

 

SECTION 5.4. OTHER INDEBTEDNESS. Create, incur, assume or permit to exist any indebtedness or liabilities resulting from borrowings, loans or advances, whether secured or unsecured, matured or unmatured, liquidated or unliquidated, joint or several, except (a) the liabilities of Borrower to Bank, (b) any other liabilities of Borrower existing as of, and disclosed to Bank prior to, the date hereof, (c) liabilities resulting from investment in fixed assets and (d) liabilities obtained for NAI Europe not to exceed an aggregate of $1,000,000.00."

 

4.     Except as specifically provided herein, all terms and conditions of the Credit Agreement remain in full force and effect, without waiver or modification. All terms defined in the Credit Agreement shall have the same meaning when used in this Amendment. This Amendment and the Credit Agreement shall be read together, as one document.

 

5.     Borrower hereby remakes all representations and warranties contained in the Credit Agreement and reaffirms all covenants set forth therein. Borrower further certifies that as of the date of this Amendment there exists no Event of Default as defined in the Credit Agreement, nor any condition, act or event which with the giving of notice or the passage of time or both would constitute any such Event of Default.

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the day and year first written above.

 

	
 
	
 
	
 
	
WELLS FARGO BANK,
	
 

	
NATURAL ALTERNATIVES
	
 
	
NATIONAL ASSOCIATION
	
 

	
INTERNATIONAL, INC.
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
/s/ Alyssa Pearson
	
 

	
By:
	
/s/ Kenneth E. Wolf
	
 
	
 
	
ALYSSA PEARSON,
	
 

	
 
	KENNETH E. WOLF, PRESIDENT	
 
	
 
	
SENIOR VICE PRESIDENT
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Michael Fortin
	
 
	
 
	
 
	
 

	
 
	
MICHAEL FORTIN,
	
 
	
 
	
 
	
 

	
 
	
CHIEF FINANCIAL OFFICER
	
 
	
 
	
 
	
 

 

 

 

-2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}]]