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**AGREEMENT      FOR AMPOULE IRRADIATION TESTING IN 2006-2007**

**AGREEMENT FOR AMPOULE IRRADIATION TESTING IN 2006-2007**
**THORIUM POWER, INC**
**RUSSIAN RESEARCH CENTRE KURCHATOV      INSTITUTE**

**RECITALS**

| A. | Thorium                Power has conceived, developed and has a proprietary interest in                certain                thorium-based fuel technology that is compatible with existing                uranium-fueled Light Water Reactors (“LWR”) while retaining significant                advantages in lower fuel cycle costs and ease in waste disposal and                which                can have a positive effect in the field of non-proliferation of nuclear                weapons while allowing the continuation of the development of commercial                nuclear energy in the world; |
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| B. | Thorium                Power has conceived, developed and has a proprietary interest in                certain                thorium-based fuel technology that will allow for the effective and                safe                disposition of separated reactor-grade plutonium (civilian or spent                fuel-derived plutonium) in existing or new nuclear power reactors.                It can                also be used to effectively dispose of excess weapons-grade                plutonium; |
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| C. | Kurchatov                Institute has extensive experience with the research, testing and                evaluation involving nuclear fuel and nuclear reactor facilities                and                systems, including systems for the use, storage and disposition of                nuclear                fuel; |
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| D. | Thorium                Power and Kurchatov Institute have been cooperating pursuant to (i)                Protocol, dated October 20, 1994, (ii) Cooperative Research and                Development Agreements CRADA No. BNL-C-96-02, CRADA No. BNL-C-98-15                and                CRADA No. BNL-C-01-6 (the “CRADAs”); and (iii) a Collaborative Research                Agreement, dated August 6, 2002 (the “2002                Agreement”); |
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| E. | Kurchatov                Institute also conducted technical and economic investigation of                Thorium                Power’s fuel technology relating to disposition of excess weapons-grade                plutonium pursuant to an agreement with UT-Battelle, LLC acting under                its                contract with the DOE of the Management & Operation of the Oak Ridge                National Laboratory (Work Release K1WR18BSC under General Order Agreement                85B99398V) (the “Oak Ridge Agreement”); |
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| F. | Thorium                Power financed ampoule irradiation testing of Thorium Power designed                uranium-zirconium and thorium-uranium fuel samples in the IR-8 research                reactor at Kurchatov Institute from 2002 to 2005 under the 2002                Agreement; |
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| G. | In                2006 and 2007, at its own expense, Kurchatov Institute continued                conducting irradiation testing of one ampoule device with                uranium-zirconium seed fuel samples and two ampoule devices with                thorium-uranium blanket fuel samples in the IR-8 research reactor                (the                “2006-2007 Irradiation Testing Program”). The description of the 2006-2007                Irradiation Testing Program is provided in Exhibit 1 attached hereto; |
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| H. | Thorium                Power desires to compensate Kurchatov Institute for the irradiation                testing activities in the 2006-2007 Irradiation Testing Program and                to                acquire all of the corresponding test data and other technical data                generated in the program. |
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| 1. | TRANSFER                OF IRRADIATION TESTING DATA; ASSIGNMENT OF TECHNICAL                DATA |
|----|--------------------------------------------------------------------------------------------------|

|  | 1.1. | Consideration.                In consideration of $410,000.00 (Four Hundred Ten Thousand US Dollars),                Kurchatov Institute hereby transfers all of the test data generated                in the                course of the 2006-2007 Irradiation Testing Program and assigns all                the                Technical Data associated with the 2006-2007 Irradiation Testing                Program                (as defined in Article 1.3 herein) to Thorium Power and provides                access to                Thorium Power and its affiliates to the information and documentation                specified in Exhibit 4 of this Agreement for audit purposes. The                entire                amount of consideration is due and payable to Kurchatov Institute                within                thirty (30) business days from the date of transfer by Kurchatov                Institute                to Thorium Power of all of the Technical Data as contemplated hereunder                and Kurchatov Institute has complied with other provisions set forth                in                this Agreement, including submission to Thorium Power of copies of                approvals and permits specified in Article 3 of this Agreement. The                payment to Kurchatov Institute shall be sent by wire transfer pursuant                to                the following wire transfer                instructions: |
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|  | 1.2. | Assignment                by Kurchatov Institute. Kurchatov Institute hereby sells, assigns,                conveys                and transfers to Thorium Power (as well as its successors and assigns)                the                entire worldwide right, title and interest in and to the Technical                Data.                Kurchatov Institute hereby expressly agrees not to use, in any manner,                the                work product hereunder or exercise any rights associated therewith                without                the express written approval by Thorium Power. |
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|  | 1.3. | Definition                of Technical Data. For purposes of this Agreement, “Technical Data” means                any and all technical data, specified in Exhibit 2 hereto. |
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|  | 1.4. | Covenants.                Kurchatov Institute hereby covenants and agrees as                follows: |
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| A. | As                a result of the Technical Data rights assignment herunder, (i) Thorium                Power is the sole owner of the entire right, title and interest in                and to                the Technical Data; and (ii) without limitation, the Technical Data                rights                will be held and enjoyed by Thorium Power no less fully and exclusively                as                they would have been by Kurchatov Institute had such assignment and                transfer not been made; |
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| B. | The                assignment and licensing of the respective Technical Data rights                by                Kurchatov Institute shall be performed to the extent not prohibited                by the                Russian Law in a form required under the applicable law without payment                of                any additional consideration. The same rule shall apply to early                termination or further prolongation of the licenses. The term of                each                license with respect to any of the Technical Data rights shall be                subject                to limitations as established by the applicable law; |
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| C. | Kurchatov                Institute has not and will not enter into an agreement with a third                party                that conflicts with this Agreement. To the extent that any subsequent                agreement between Kurchatov Institute and a third party conflicts                with the                assignment of the Technical Data rights, Kurchatov Institute agrees                that                the terms of this Agreement will supersede the terms of such                agreement; |
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| D. | Any                facts, circumstances or notices regarding any of the Technical Data                rights                shall be promptly communicated and delivered to Thorium Power;                and |
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| E. | Kurchatov                Institute shall assist Thorium Power to the best of its ability in                the                protection of Thorium Power’s Technical Data rights. For that purpose,                Kurchatov Institute shall testify in any legal proceedings, sign                all                papers, execute all applications, divisionals, continuations,                continuations-in-part, reissues, renewals, extensions and additions                thereof and counterparts thereto, make all rightful oaths and generally                aid Thorium Power (as well as its successors and assigns), with expenses                reasonably incurred to be borne by Thorium Power (except those expenses                which relate in any way to any breach of this assignment, which expenses                shall be borne by Kurchatov Institute), in obtaining and enforcing                proper                protection and access (in the reasonable discretion of Thorium Power)                for                and to the Technical Data rights. |
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|  | 1.5. | Request.                Kurchatov Institute does hereby authorize and request that any and                all                Technical Data rights which may be granted upon the Technical Data                be                issued to Thorium Power as assignee of the entire interest therein.                The                assignment of the respective Technical Data rights by the respective                right-holder shall be performed to the extent not prohibited by the                Russian Law, in a form required by Russian Law, without payment of                any                additional consideration to Kurchatov Institute. |
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|  | 1.6. | Notice                and Assistance Regarding Patent and Copyright Infringement. Kurchatov                Institute shall report to Thorium Power promptly and in reasonable                written                detail, each notice or claim of patent or copyright infringement,                or any                other infringement related to Technical Data rights and (or) intellectual                property rights based on the performance of this Agreement of which                Kurchatov Institute has knowledge and shall furnish to Thorium Power,                at                the expense of Thorium Power, when requested by Thorium Power, all                evidence and information in possession of Kurchatov Institute pertaining                to such claim or any resulting                suit. |
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| 2. | CONFIDENTIALITY                AND COMMERCIAL SECRET |
|----|------------------------------------------------------|

|  | 2.1. | Obligation                of Confidentiality and Non-Use. Kurchatov Institute acknowledges                and                agrees that it owes a duty to Thorium Power to maintain in strict                confidence all Confidential Information and Commercial Secret Information                (as defined below) provided to, learned or developed by Kurchatov                Institute in connection with the performance of the 2006-2007 Irradiation                Testing Program either by Kurchatov Institute or its subcontractors.                Kurchatov Institute shall take all steps reasonably necessary to                prevent                the unauthorized disclosure or dissemination of such Confidential                Information or Commercial Secret Information for any reason and to                any                person or entity, except with the prior written consent of Thorium                Power.                In addition, Kurchatov Institute shall not use or copy any such                Confidential Information or Commercial Secret Information, or authorize                or                permit others to use any such Confidential Information or Commercial                Secret Information, for any purposes other than in connection with                performance of the Services hereunder. Notwithstanding the foregoing,                Kurchatov Institute may disclose such Confidential Information or                Commercial Secret Information to those officers, employees, advisors                and                consultants of Kurchatov Institute (each, a “Representative,” and                collectively, “Representatives”) who have a need to know such information                in connection with performance of services under this Agreement;                provided                that each Representative, prior to such disclosure, is informed by                Kurchatov Institute of the confidential nature of such information                and of                the confidentiality obligations imposed on Kurchatov Institute under                this                Agreement, and signs a written undertaking confirming his or its                agreement                to treat it confidentially. Kurchatov Institute shall be responsible                for                any and all breaches of the provisions of this Article 2 (Confidentiality                and Commercial Secret) by its Representatives. The Parties acknowledge                that Kurchatov Institute intends to engage [REDACTED] as Thorium                Power’s                representative to download and process the test data generated during                the                performance of the 2006-2007 Irradiation Testing Program. As used                herein,                “steps reasonably necessary” means, at a minimum, the steps that Kurchatov                Institute takes to protect its own, similarly confidential or proprietary                information, which steps shall not be less than a reasonable standard                of                care, and in the case of Commercial Secret Information shall include                maintaining an up to date list of the Commercial Secret Information                (the                “List”), establishing a procedure for handling of such information and                controlling compliance therewith, marking or labeling such information                with the words ‘Commercial Secret’ and the name of Thorium Power and its                location, and requiring conclusion of a confidentiality agreement                in the                form of Exhibit 3 by any person who shall have or is likely to have                access                to such information. At the discretion of Thorium Power, all or any                part                of the Confidential Information may become subject to a requirement                that                it be classified and protected as ‘Commercial Secret Information’                information within the meaning of Russian                law. |
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|  | 2.2 | Obligation                to Inform. Upon learning of any actual or threatened unauthorized                disclosure or use of the Thorium Power’s Confidential Information or                Commercial Secret Information by it or a third party, Kurchatov Institute                promptly shall provide Thorium Power with notice                thereof. |
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|  | 2.3 | Definition                of Confidential Information and Commercial Secret Information. The                term                “Confidential Information” shall mean this Agreement and all trade                secrets, data, know-how, technical data or other information and                materials, business strategies, plans and procedures, business                information, proprietary information, of Thorium Power, as well as                any                other information and materials that are deemed confidential or                proprietary to or by Thorium Power (including, without limitation,                all                information and materials of Thorium Power’s customers and their other                consultants). The term ‘Commercial Secret Information’ shall have the                meaning established under Russian law. Protocols of irradiation testing                shall be deemed to be Commercial Secret Information and shall be                treated                as such. At the same time, Commercial Secret Information excludes                the                following three documents relating to the 2006-2007 Irradiation Testing                Program that were issued prior to the Effective Date of this Agreement                and                were not marked as Commercial Secret Information: (a) Safety analysis,                (2)                Technical solutions, and (3) Procedures for performing irradiation                testing. The above three documents are deemed to be Confidential                Information. Kurchatov Institute shall provide to Thorium Power copies                of                the above three documents simultaneously with the Technical Data                specified                in Exhibit 4. |
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|  | 2.4 | Exceptions                to Confidential Information. Notwithstanding the foregoing paragraph,                “Confidential Information” shall not include any information or materials                that: (a) are or become known to the general public through no act                or                omission of Kurchatov Institute or any other person with an obligation                of                confidentiality to Thorium Power or any of Thorium’s customers, or (b) are                required to be disclosed pursuant to applicable law (provided, however,                that prior to any disclosure of Confidential Information as required                by                applicable law, Kurchatov Institute shall advise Thorium Power of                such                required disclosure promptly upon learning thereof and shall cooperate                with Thorium Power and Thorium Power’s customers in order to afford them a                reasonable opportunity to contest or limit such                disclosure). |
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|  | 2.5 | Return                or Destruction of Confidential Information. Upon the termination                or                expiration of this Agreement, or at any other time upon the written                request of Thorium Power, Kurchatov Institute shall promptly return                to                Thorium Power or, at Thorium Power’s option, destroy all Confidential                Information and Commercial Secret Information pursuant to Exhibit                2 in                Kurchatov Institute’s possession or control, together with all copies,                summaries and analyses thereof, regardless of the format in which                such                information exists or is stored. Within five (5) business days following                the expiration or early termination of this Agreement, or any written                request as set forth above, Kurchatov Institute shall provide Thorium                Power with a written certification of Kurchatov Institute’s compliance                with the provisions of this                paragraph. |
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|  | 2.6 | The                provisions of this Article 2 concerning confidentiality and Commercial                Secret information shall survive the termination of this Agreement                and the                agreements envisioned hereby, and the liquidation and reorganization                of                the parties hereto. Kurchatov Institute and any agent thereof including                subcontractors shall be responsible for any and all damages connected                with                the unauthorized disclosure of Confidential or Commercial Secret                Information. |
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| 3. | OBTAINING                APPROVALS AND PERMITS |
|----|------------------------------------------------|

|  | 3.1. | Kurchatov                Institute hereby agrees to obtain any and all necessary approvals                and/or                permits that may be required under Russian laws and regulations in                order                (i) to assign Technical Data rights as envisioned by Article 1 hereof;                (ii) to transfer the work product created hereunder to Thorium Power;                and                (iii) to carry out any other activities pursuant to this Agreement.                Kurchatov Institute shall promptly provide to Thorium Power full                and                accurate copies of such approvals and                permits. |
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|  | 3.2. | Kurchatov                Institute hereby agrees to apply for and obtain a permit and/or approval                from the relevant Russian Federation export control authority in                connection with the proposed transfer to Thorium Power of the technical                documentation (including on magnetic media) created hereunder. Kurchatov                Institute shall promptly forward to Thorium Power full and complete                copies                of such approvals and permits. |
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|  | 3.3. | Kurchatov                Institute hereby agrees to obtain any other permits and/or approvals                that                may be required to perform this                Agreement. |
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|  | 3.4. | In                the event that Kurchatov Institute fails to obtain permits and/or                approvals set forth in this Article 3, Thorium Power shall be entitled,                at                its election, (a) to suspend performance until such time as the permits                and approvals have been obtained and copies supplied to Thorium Power,                or                (b) to terminate this Agreement. In no event shall Thorium Power                be                obligated to make any payments to Kurchatov Institute hereunder,                including                without limitation pursuant to Article 1.1 hereof, unless and until                all                such permits and approvals shall have been obtained and a copy supplied                to                Thorium Power. |
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| 4. | DISCLAIMERS                AND LIMITATIONS OF LIABILITY |
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|  | 4.1. | Disclaimer                of Consequential Damages. Neither Party shall be liable to the other                Party                hereto for any consequential, incidental, indirect, special, punitive                or                exemplary damages suffered or incurred by such other Party in connection                with a breach or alleged breach of this Agreement, even if such other                Party has been advised of the possibility of such damages. Consequential                damages shall include, without limitation, lost profits, lost savings,                lost business or lost goodwill, loss of nuclear material, loss of                accountability of nuclear material, or unavailability of facilities.                The                provisions of this Article 4.1 shall apply to the full extent permitted                by                law whether such a claim is based on tort (regardless of the degree                of                fault or negligence), warranty, breach of contract, strict liability                or                otherwise, and shall survive the cancellation, expiration or termination                of this Agreement, as well as the fulfillment of the obligations                of the                Parties hereunder and shall apply notwithstanding any other provisions                of                this Agreement. |
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|  | 4.2. | Acknowledgement.                The Parties hereto, having been advised by legal counsel, acknowledge                and                agree that they are sophisticated parties in all matters relating                to this                Agreement and that the foregoing disclaimer and limitation of liability                represent bargained-for allocations of risk, and that the economics,                terms                and conditions of this Agreement reflect such                allocations. |
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| 5. | REPRESENTATIONS                AND WARRANTIES |
|----|-----------------------------------------------|

| 6. | COMPLIANCE                WITH LAWS |
|----|-------------------------------------|

|  | 6.1 | Kurchatov                Institute shall comply, and shall be responsible for ensuring that                its                employees and consultants comply, with all applicable laws in their                performance of its services pursuant to this Agreement. Without limiting                the generality of the foregoing, Kurchatov Institute further agrees                that                it will take no action, and it will ensure that its employees and                contractors take no action, that would violate the Foreign Corrupt                Practices Act of 1977, as amended, or any other similar U.S. or foreign                law, or that would create any liability for Thorium Power under any                such                law. Kurchatov Institute further understands that materials and                information resulting from the performance of this Agreement may                be                subject to U.S. and Russian export control laws and that Kurchatov                Institute is responsible for its compliance with such laws. Kurchatov                Institute shall be responsible for developing an internal compliance                program to ensure compliance by it and its employees and contractors                with                all applicable laws. |
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|  | 6.2 | Thorium                Power agrees and covenants that the export product and products made                using                the Technical Data: |
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|  | a. | Shall                not be used for production of nuclear weapons and other devices or                any                other military purpose; |
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|  | b. | Shall                be safeguarded using methods of physical protection at the level                not less                than that recommended by the International Atomic Energy                Agency; |
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|   | c. | Shall                be re-exported or transferred from the jurisdiction of the receiving                country to any other country only upon the receipt of prior approval                from                the Russian Agency for Atomic Energy                (Rosatom). |
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| 7. | CHOICE                OF LAW |
|----|------------------------------|

| 8. | EQUITABLE                RELIEF |
|----|---------------------------------|

| 9. | AUDIT                RIGHTS |
|----|-----------------------------|

| 10. | HEADINGS |
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| 11. | NOTICES |
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| 12. | AMENDMENTS                OR MODIFICATIONS |
|-----|--------------------------------------------|

| 13. | FORCE                MAJEURE |
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| 14. | COUNTERPARTS |
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| 15. | NO                THIRD-PARTY BENEFICIARIES |
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| 16. | REPRODUCTION                OF DOCUMENTS |
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| 17. | SURVIVAL |
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| 18. | SEVERABILITY |
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| 19. | TERM. |
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| 20. | TERMINATION |
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| 21. | DISPUTE                RESOLUTION |
|-----|-----------------------------------|

| 22. | MISCELLANEOUS |
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|  | 22.1. | Independent                Contractor Status. Kurchatov Institute shall not be considered an                employee                of Thorium Power and shall not be entitled to participate in or receive                any benefits or rights as an employee of Thorium Power under any                employee                benefit and welfare plans, including, without limitation, employee                insurance, pension, savings and security plans (each, a “Plan”). In                addition, even if Kurchatov Institute’s status is ultimately                recharacterized by a third party to constitute employee status, Kurchatov                Institute shall not be eligible to participate in or receive any                benefits                or rights as an employee of Thorium Power under any Plan unless and                until                Thorium Power consents to such eligibility in writing. Without limiting                the generality of the foregoing, Kurchatov Institute shall not be                considered an employee of Thorium Power for purposes of any state                or                federal laws relating to unemployment insurance, social security,                workers                compensation or any regulations which may impute any obligation or                liability to Thorium Power reason of an employment relationship.                Kurchatov                Institute agrees to pay all income, payroll, and other taxes or levies                imposed by any governmental authority on any compensation that Kurchatov                Institute receives under this Agreement. Kurchatov Institute shall                indemnify, defend and hold harmless Thorium Power and its officers                and                employees from and against any and all losses, damages, liabilities,                obligations, judgments, penalties, fines, awards, costs, expenses                and                disbursements (including without limitation, the costs, expenses                and                disbursements, as and when incurred, of investigating, preparing                or                defending any claim, action, suit, proceeding or investigation) suffered                or incurred by Thorium Power as a result of any allegation that Kurchatov                Institute is an employee of Thorium Power by virtue of performing                any work                for or on behalf of Thorium Power hereunder or otherwise. This Agreement                shall not be construed as authority for Kurchatov Institute to act                as                Thorium Power’s agent or in any other similar capacity, or to make                commitments of any kind for the account of or on behalf of Thorium                Power,                and Kurchatov Institute shall not take any action suggesting                otherwise. |
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|  | 22.2. | Assignment.                Kurchatov Institute recognizes that Thorium Power desires to obtain                these                Services for the reasons stated in the Recitals above, and that this                Agreement is non-transferable. Therefore, Kurchatov Institute may                not                assign or transfer this Agreement or any of its rights or obligations                created hereunder, by operation of law or otherwise, without the                prior                written consent of Thorium Power. |
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| 23. | CONTRACT                CONSTRUCTION |
|-----|--------------------------------------|

|   | 23.1. | Contract                Construction. For purposes of contract construction, or otherwise,                this                Agreement is the product of negotiation and neither Party to it shall                be                deemed to be the drafter of this Agreement or any part                thereof. |
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|    | 23.2. | Entire                Agreement. Except as otherwise expressly set forth in this Agreement,                those documents expressly referred to herein, embody the complete                agreement and understanding among the Parties, and cancels and supersedes                any related previous understanding or agreement, whether written                or oral.                Notwithstanding the foregoing and for the avoidance of doubt, this                Section                23.2 shall not apply to any provisions of that certain Collaborative                Research Agreement by and between Thorium Power and Kurchatov Institute                dated August 6, 2002, as amended (the "CRA") that, by their terms,                survive                the expiration and termination of the CRA, as provided in Section                19                thereof. |
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| 24. | LANGUAGE |
|-----|----------|

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**Exhibit      1**

**Description      of the 2006-2007 Irradiation Testing Program Parameters and Testing      Data**

**[REDACTED]**

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**Exhibit      2**

**Assigned      Technical Data relating to the 2006-2007 Irradiation Testing      Program**

**[REDACTED]**

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**Exhibit      3**

| Dated: |   |   | Signature: |   |
|--------|--------|--------|------------|--------|
|   |   |   | Name:      |   |
|   |   |   | Company:   |   |
|   |   |   | Address:   |   |

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**Exhibit      4**

**Information      and documentation relating to the 2006-2007 Irradiation Testing Program      accessible by Thorium Power or its representatives for audit purposes pursuant      to Article 9 of this Agreement**

**[REDACTED]**

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**Exhibit      5**

**The      form of protocol**

**Results      for testing of trial blanket and seed rods in channels of the IR-8 research      reactor**

**[REDACTED]**

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