Exhibit
      4.17

    


    CONFIDENTIAL
      SETTLEMENT
      AGREEMENT AND RELEASE 

    WITH
      RESERVATION OF RIGHTS


    


    This
      Settlement Agreement and Release with Reservation of Rights (“Settlement
      Agreement”), is made and entered into as of July 9, 2008, by and between Mark
      Neuhaus (“Neuhaus”), and SulphCo, Inc., a Nevada corporation (“SulphCo”).
      Neuhaus and SulphCo are referred to herein collectively as the
“Parties.”

    


    WHEREAS,
      Neuhaus has filed suit against SulphCo and Rudolph Gunnerman (“Gunnerman”) in
      Nevada relating to a Consulting Agreement and Non-Qualified Stock Option
      Agreement each dated on or about March 22, 2002 (the Consulting Agreement and
      Non-Qualified Stock Option Agreements are collectively referred to herein as
      the
“March 2002 Agreements”), identified as Mark
      Neuhaus v. SulphCo, Inc., Rudolph W. Gunnerman, and Does I-X, and Roe
      Corporations I-10, Defendants; SulphCo, Inc., Counterclaimant v. Mark Neuhaus;
      Coldwater Capital, LLC, a Nevada limited liability company; and DOES I through
      X, inclusive, Counterdefendants,
      in the
      Second Judicial District Court of the State of Nevada, in and for the County
      of
      Washoe, Case No. CV06 02502, Dept. No. 1 (the “Neuhaus Lawsuit”); 

    


    WHEREAS,
      SulphCo has filed suit against Neuhaus in New York, New York, relating to a
      Non-Qualified Stock Option Agreement dated on or about August 29, 2001
      (hereinafter referred to as the “August 2001 Agreement”), identified as
SulphCo,
      Inc. v. Mark Neuhaus,
      Index
      No. 602500/07, in the Supreme Court of the State of New York, County of New
      York, (“New York Lawsuit”); and

    


    WHEREAS,
      the Parties desire to resolve the disputes identified herein to the extent
      described herein;



    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    NOW,
      THEREFORE, in consideration of the mutual covenants contained in this Settlement
      Agreement, and for other good and valuable consideration, the receipt and
      adequacy of which are hereby acknowledged, the Parties hereto, by executing
      below, and intending to be legally bound, hereby agree as follows:

    


    
      	1.	
              CONSIDERATION.

            


    

    


    1. SulphCo
      shall pay to Neuhaus the total consideration of $750,000, such payment to be
      made as follows:

    


    
      	 	
              a.

            	
              At
                the time of execution of this agreement, SulphCo shall pay to Neuhaus,
                by
                wire transfer to the trust account of Erickson, Thorpe & Swainston,
                Ltd., or cashier’s check by check made payable to the trust account of
                Erickson, Thorpe & Swainston, Ltd., the amount of
                $250,000.00;

            


    

    


    
      	 	
              b.

            	
              SulphCo
                shall issue to Neuhaus and his lawyers, Erickson, Thorpe & Swainston,
                Ltd., and/or their designees, an aggregate number of shares of SulphCo
                common stock, as calculated herein, valued at $500,000 upon approval
                by
                the American Stock Exchange (“AMEX”) of the Additional Listing Application
                (the “Application”) for such shares as described below. The number of
                shares issuable hereunder shall be determined by dividing $500,000
                by the
                closing price of SulphCo stock as of the date the Settlement Agreement
                is
                executed by the Parties. One-half of the number of shares issuable
                hereunder shall be issued in the name of Mark Neuhaus and the remaining
                one-half of shares issuable hereunder shall be issued in the name
                of
                Erickson, Thorpe & Swainston, Ltd. Upon determination of the number of
                shares to be issued, SulphCo shall submit the Application to AMEX
                to issue
                such shares. Upon approval of the Application, SulphCo shall issue
                and
                deliver the shares to Neuhaus, Erickson, Thorpe & Swainston, Ltd.,
                and/or their designees. Such shares shall be registered by SulphCo
                in an
                appropriate registration statement that shall be filed by SulphCo
                no later
                than 30 days from the date of execution of this Settlement Agreement.
                SulphCo shall use its commercially reasonable efforts to cause such
                registration statement to be declared effective by the Securities
                and
                Exchange Commission (the “SEC”) as soon as reasonably possible. Once the
                SEC declares the registration statement to be effective, SulphCo
                shall
                file a final prospectus with the SEC as soon as reasonably possible.
                Upon
                the registration of the shares, SulphCo shall cooperate with Neuhaus
                to
                submit the shares for DWAC
                eligibility.

            


    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
              2.

            	
              Neuhaus
                shall dismiss, with prejudice, his claims against SulphCo in the
                Neuhaus
                Lawsuit, each party to bear his/its own attorneys’ fees and costs. Such
                dismissal shall be made by stipulation, if Gunnerman’s counsel will sign
                such stipulation, or by joint motion for dismissal filed by the Parties,
                if Gunnerman’s counsel will not sign such a
                stipulation.

            


    

    


    
      	
              3.

            	
              In
                the Neuhaus Lawsuit, SulphCo shall withdraw: (1) its Writ Of Mandamus
                filed with the Nevada Supreme Court on or about June 24, 2008; (2)
                its
                Opposition to Plaintiff’s Motion to Amend Complaint, which was filed on or
                about Friday, June 27, 2008, and; (3) its Motion for Summary Judgment
                submitted to the Court on or about June 2, 2008.
                

            


    

    


    
      	
              4.

            	
              SulphCo
                shall dismiss, with prejudice, the New York Lawsuit, by stipulation
                or
                other appropriate method, each party to bear its/his own attorneys’ fees
                and costs;

            


    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              5.

            	
              The
                Parties acknowledge that in accordance with NRS 17.245, this Settlement
                Agreement does not include Neuhaus’ claims against Gunnerman that were
                made or could have been made in the Neuhaus Lawsuit, and that Neuhaus
                intends to proceed with his claims against Gunnerman in the Neuhaus
                lawsuit. The Parties agree that if Neuhaus prevails against Gunnerman
                in
                the Neuhaus Lawsuit or Neuhaus and Gunnerman reach a settlement relating
                to such claims and Gunnerman seeks indemnification for such claims
                against
                SulphCo, then Neuhaus and his attorneys, Erickson, Thorpe, and Swainston,
                Ltd., shall defend such claims on behalf of SulphCo, at Neuhaus’ sole
                expense. In the event of such action, SulphCo shall reasonably cooperate
                with Neuhaus’ counsel in any such defense. Neuhaus agrees, until the final
                resolution of such indemnification claim by Gunnerman against SulphCo,
                to
                the extent any such judgment or settlement is not otherwise covered
                by any
                insurance benefiting Gunnerman or SulphCo, not to enforce any such
                judgment against Gunnerman. If Gunnerman prevails against SulphCo
                in any
                such action seeking indemnification from SulphCo relating to the
                March
                2002 Agreements, then Neuhaus expressly agrees that he will not attempt
                to
                execute upon his judgment against Gunnerman. The Parties agree and
                acknowledge that the intent of the provisions in this Article 5 is
                that,
                in consideration for SulphCo agreeing to settle its claims with Neuhaus
                at
                this time and pursuant to the terms described herein, SulphCo shall
                not be
                responsible to make any payments to Gunnerman to indemnify him for
                any
                liability to Neuhaus relating to the March 2002 Agreements. This
                provision
                does not prevent Neuhaus from seeking payment or coverage from any
                insurance policy benefiting Gunnerman and/or Neuhaus, and is not
                intended
                to prevent or preclude coverage by any insurer for the alleged errors
                or
                omissions of Gunnerman referable to the Neuhaus claim, so long as
                SulphCo
                does not incur any cost, expense, or damages as a result of such
                insurance
                payment.

            


    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	2.	
              RELEASE.

            


    

    


    2.1
       Except
      as
      otherwise provided herein with respect to his reservation of rights as against
      Gunnerman, and except as expressly provided in this Settlement Agreement
      regarding Neuhaus’s ability to seek coverage or payment from any errors or
      omissions insurance policy benefiting Gunnerman and/or Neuhaus, Neuhaus agrees
      to fully release, acquit and forever discharge SulphCo, and all of its persons,
      firms, associations, corporations, partnerships, subcontractors, employees,
      insurers, attorneys, officers, directors, shareholder, partners, affiliates,
      successors-in-interest, predecessors-in-interest, and anyone or any entity
      related thereto, (with the exception of Gunnerman, as noted below), from all
      known or unknown, revealed and concealed, contingent and non-contingent claims,
      actions, causes of action, and suits for damages, at law or in equity, filed
      or
      otherwise, relating to March 2002 Agreements and any claims that were brought,
      or should have been brought, in the Neuhaus Lawsuit. This release does not
      apply
      to Neuhaus’ claims against Gunnerman in the Neuhaus Lawsuit, which claims shall
      survive and be unaffected by this Settlement Agreement and does not prohibit
      Neuhaus from seeking payment or coverage from any insurance policy benefiting
      Gunnerman and/or Neuhaus so long as SulphCo does not incur any cost, expense,
      or
      damage as a result of such insurance payment. 

    


    2.2 SulphCo
      agrees to fully release, acquit and forever discharge Neuhaus from all known
      or
      unknown, revealed and concealed, contingent and non-contingent claims, actions,
      causes of action, and suits for damages, at law or in equity, filed or
      otherwise, relating to the August 2001 Agreement and any claims that were
      brought, or should have been brought, in the New York Lawsuit.

    


    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	3.	
              CONFIDENTIALITY.

            


    

    


    3.1 The
      Parties agree that the terms of this Settlement Agreement shall remain
      confidential. Except as ordered by a Court of Competent Jurisdiction or as
      otherwise required by law (in SulphCo's case, based on the advice of SEC counsel
      to the company), the Parties and their counsel will make no disclosure to any
      third party of the terms of this Settlement Agreement and agree to treat as
      completely confidential the amount of the consideration for the settlement
      between the Parties and the terms of the Settlement Agreement. It will not
      constitute a violation of this paragraph if the Parties indicate that a
      settlement was reached between the Parties, so long as there is no disclosure
      revealing any specific term, consideration, or element of consideration given.
      It is also understood that the Parties may discuss these matters with their
      attorneys and accountants and may reflect this settlement upon income tax or
      other necessary accounting documents. If the terms of this Settlement Agreement
      arise as an issue in Neuhaus’ prosecution of his case against Gunnerman, Neuhaus
      may provide this Agreement to the Court for its utilization.

    


    
      	4.	
              GENERAL
                PROVISIONS.

            


    

    


    4.1
       This
      Settlement Agreement and the releases herein shall inure to the benefit of
      the
      Parties and releasees, their respective agents, affiliates, partners,
      shareholders, successors, predecessors, assigns, and other legal
      representatives, except as otherwise expressly stated herein with respect to
      Gunnerman. 

    


    4.2
       It
      is
      understood and agreed that the Parties hereto have not been influenced to any
      extent whatsoever in entering into this Settlement Agreement and/or in making
      the releases herein by any representative, agent or employee of an adverse
      party, or by any attorney, person or persons representing or employed by the
      undersigned, and that this Settlement Agreement and the releases herein are
      entered into freely and voluntarily.

    


    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    4.3
       The
      Parties hereto have received the independent advice of their respective
      attorneys prior to the execution hereof.

    


    4.4
      This
      Settlement Agreement is a settlement and release of disputed claims and does
      not
      constitute an admission of liability or responsibility on the part the
      Parties.

    


    4.5
      The
      terms of this Settlement Agreement are contractual and not a mere recital.
      The
      Parties hereto further declare that this entire Settlement Agreement has been
      carefully read, that the contents thereof are fully known and understood and
      that the said Settlement Agreement is signed as a free and voluntary act of
      the
      undersigned.

    


    4.6
       This
      Settlement Agreement shall be construed and interpreted, and the rights and
      obligations of the Parties hereto determined, in accordance with the laws of
      the
      State of Nevada. The Parties consent to the jurisdiction of the courts of the
      State of Nevada as to any issues related to this Settlement Agreement, including
      the validity, enforceability, or interpretation thereof, which require judicial
      resolution.

    


    4.7 If
      the
      Parties have any dispute over the terms of this Settlement Agreement, they
      shall
      first submit such dispute to Honorable Jerry Carr Whitehead for
      mediation.

    


    4.8
       This
      document constitutes the entire Settlement Agreement between the undersigned,
      except that the terms and provisions of the “Settlement Agreement Dated
      June 27, 2008,” may be referred to for any clarification of the terms of
      this Settlement Agreement and Release. Each Party cooperated in drafting this
      Settlement Agreement. It should not be construed against either of the
      Parties. 

    


    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    4.9
       If
      any
      legal action is brought to enforce the terms and conditions of this Settlement
      Agreement, the prevailing party shall be entitled to an award of attorneys’ fees
      and costs incurred therefor. 

    


    4.10
      This
      Settlement Agreement may be executed in counterparts, each of which shall
      constitute an original.

    


    IN
      WITNESS WHEREOF, the undersigned have executed this Settlement Agreement and
      Release on the following date(s).


    


    
      	
              Date:
                ______________________

            	
              Mark
                Neuhaus

            
	 	 	 
	 	 
	 	 	 
	
              Date:
                ______________________

            	
              SULPHCO,
                INC.

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            


    

     

    
      
         

      

      
        8