Document:

INITIAL
      COLLABORATIVE AGREEMENT

                           

                        

                

              

            

          

        

      

    
      Dated
July 23rd
2009,

    

    

     

    

    Between:

    

    AREVA, a French public limited
company with a management board and supervisory board organized and existing
under the laws of France, with capital of 1,346,822,638 euros, registered under
N° 712 054 923 at the Paris Registry of Trade and Commerce, and whose registered
head-office address is 33, rue La Fayette, 75009 Paris Cedex, acting for itself
and in the name of its Affiliates represented by Mr. Patrick CHAMPALAUNE in his
capacity as Senior Vice President, Purchasing,

     

    hereinafter
referred to as “AREVA”

     on
the one hand,

    

    And,

    

    THORIUM POWER, a Nevada corporation, whose executive office address is 1600 Tyson's Blvd,
Suite 550 Mclean, VA 22102 USA, represented by Seth GRAE, in his capacity as President &
CEO

    

     hereinafter referred to as "THORIUM
POWER",

     on the other hand,

    

     

    Referred to hereafter individually as
"Party" and collectively as "Parties".

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Whereas, THORIUM POWER is developing a
thorium seed-blanket fuel assembly design for VVERs aimed at enhancing
proliferation-resistance and reducing the amount of waste to be disposed of
while maintaining competitive economics and ensuring increased safety
margins.

    

    Whereas, AREVA and THORIUM POWER have
started informal exchanges with each other in early 2009 to further investigate
various thorium fuel cycle options including one based on THORIUM POWER ’s fuel
assembly seed-blanket concept.  An informational meeting was held on February
10th 2009 followed by technical exchanges
and a more detailed scientific meeting on May 21-22nd 2009.

    

    Whereas, AREVA is interested in
assessing the potential of thorium in future fuel cycles and expressed – at the
May 22th meeting – its willingness to provide
THORIUM POWER with a consultancy agreement as a follow-up.

    

    Whereas, the general scope is to
investigate specific topics of thorium use in various reactor types and fuel
cycle options. The two phases of the project are :

    

    
      	
               
      

            	
              Phase 1 :

            	
              Study of Evolutionary Thorium Fuel
      Concepts for PWRs (see Scope of Work in Addendum I and agreed-upon during
      meeting on July 8th
  2009)

            

    

    

    
      	
               
      

            	
              Phase 2 :

            	
              Detailed study of evolutionary and
      longer-term thorium fuel concepts (Scope of Work not yet defined in detail
      and subject of discussion during execution of Phase
    1)

            

    

    

    Whereas, in this context, AREVA and
THORIUM POWER wish to set out in this INITIAL COLLABORATIVE
AGREEMENT, the basic
principles for the collaboration between AREVA and THORIUM POWER for the first
phase relating to the ‘Study of Evolutionary Thorium Fuel
Concepts for PWRs’.

    

    THEREFORE, it has been agreed as follows
:

    

    
      
        	
                1.

              	
                OBJECT
      OF THE INITIAL COLLABORATIVE
AGREEMENT

              

      

    

    

    For the purpose of the INITIAL
COLLABORATIVE AGREEMENT,

    

    “AREVA” shall means AREVA and AREVA
Affiliates

    

    “AREVA Affiliate” shall mean any
corporation or individual that controls or is controlled by or is under common
control with AREVA directly or through one or more Affiliates of at least fifty
percent of the shares of stock entitled to vote for the election of directors of
the maximum permitted by law or administrative action. Affiliate shall also
include any individual employed by and agents of such
Affiliate.

    

    The general objective is to investigate
specific topics of thorium fuel cycles in AREVA’s LWRs.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    The purpose of the INITIAL COLLABORATIVE
AGREEMENT is to perform the first phase providing initial general results
relating to evolutionary approaches to the use of thorium in AREVA’s LWRs, more
specifically within this Phase 1 in EPR-like PWRs.

    

    The performance of Phase 2, further
deepening some technical aspects, depends on the results of Phase 1.
Consequently, the Parties shall meet together in order to take the decision
concerning the implementation of the Phase 2.

    

    Phase 1 and Phase 2 will be conducted
with the intention of further collaborative agreements between AREVA and THORIUM
POWER in order to develop and set up new products and technologies related to
thorium fuel concepts. AREVA’s use of THORIUM POWER’s Background Knowledge
for commercial purposes or
any purpose other than set forth herein shall be separately negotiated on a royalty
principle.

    

    
      
        	
                2.

              	
                SCOPE
      OF WORK

              

      

    

    

    The scope of work of the INITIAL
COLLABORATIVE AGREEMENT will consist in Phase 1 only, as described in Addendum 1
hereto, relating to the
‘Study of Evolutionary
Thorium Fuel Concepts for PWRs’; provided, however, that the scope of work of
this INITIAL COLLABORATIVE AGREEMENT will not include work related to Task 1.6
of Addendum 1, which calls for THORIUM POWER to “Perform a
Preliminary Review of Thermal Hydraulic Characteristics and Fuel Behaviour for
the Selected Concepts for the EPR 18-month Equilibrium Cycle”.  If the Parties decide to
pursue Task 1.6 based on the results of Tasks 1.1-1.5, then the work on Task 1.6
shall commence only after the Parties have agreed on the specific scope and
price for Task 1.6 in a subsequent order for work or through an amendment to the
initial order for work.

     

    
      
        	
                3.

              	
                FINANCIAL
      CONDITIONS

              

      

    

    

    
      
        	
                3.1.

              	
                The total amount of the
      Professional Fee for the first phase (including only Tasks 1.1 through
      1.5, excluding the expenses mentioned in Section 3.3) is
  :

              

      

    

    

    550 000 USD (five hundred fifty
thousands US-Dollars)

    

     

    The price is defined in Addendum
I.

     

    
      
        	
                3.2.

              	
                Prices mentioned in this INITIAL
      COLLABORATIVE AGREEMENT are exclusive of Value Added tax (VAT) which may
      be levied in France and collected by THORIUM POWER in
      accordance with the applicable laws. If applicable, such tax shall be
      added to the contract price at a rate and at the time when it becomes
      payable in accordance with the applicable laws of France at the date of
      invoicing.

              

      

       

    

    Prices mentioned in this INITIAL
COLLABORATIVE AGREEMENT are inclusive of any other taxes, duties, levies, dues
which may be levied by any tax authorities in the USA, in France or in any other country on THORIUM
POWER and on THORIUM POWER’s personnel, including but not restricted to customs
duties, sales tax and any taxes on income. Such taxes, duties, levies, dues
shall be borne by THORIUM POWER or by THORIUM POWER’s
personnel.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    The invoices issued by THORIUM POWER in
return for the delivery of the Services shall be sent in duplicate, one original
and a copy, to the address below:

    

     AREVA

    Comptabilité
fournisseur

    Tour AREVA

    1 place Jean Millier

    92 084 Paris La Défense

    

    In addition to the compulsory legal
details, it is essential that the invoices include the references of the
Contract. AREVA reserves the right to suspend the payment of any invoice which
does not meet these requirements.

    

    Payment is made by AREVA by bank
transfer within sixty (60)
days, of the date of issue
of the correct invoice.

    

    The invoice shall be deemed to have been issued on the fifth
calendar day prior to its receipt by Areva if the delay between its date of issue and its
date of receipt by AREVA is more than five (5) calendar
days.

     

    In case of late payment, the penalties
applicable to AREVA shall be equal to three (3) times the
legal rate of interest per day of delay. The penalties will apply from the day
immediately following the due date to the day on which actual payment is
actually received by THORIUM POWER.

     

    
      
        	
                3.3.

              	
                AREVA will also reimburse THORIUM
      POWER for any reasonable out of pocket expenses properly incurred by
      THORIUM POWER or its agents or subcontractors and directly attributable to
      the provision of the services described in Appendix 1 hereto, including,
      without limitation, travel, subsistence and other expenses directly
      attributable to the provision of such services, provided however that such
      expenses shall not exceed twenty percent (20%) of the Professional Fee
      earned by THORIUM POWER on a rolling, cumulative basis without the prior
      written approval of AREVA.  For the avoidance of doubt, expenses
      shall not include general overhead of THORIUM POWER or any professional
      fees paid to agents or subcontractors of THORIUM POWER.  The
      expenses shall be billed to AREVA at cost without any administrative
      charge, and in accordance with the procedure set forth in Section 3.2
      above. THORIUM POWER shall provide the proof of such out of pocket
      expenses by attaching copy of these to the invoices sent to
      AREVA.

              

      

    

     

    
      
        	
                4.

              	
                NEGOTIATION
      SCHEDULE

              

      

    

    

    The Parties acknowledge their common
intent is to (i) perform in good faith the negotiation, and (ii) to use a
reasonable level of best efforts to sign a CONSULTANCY AGREEMENT providing the financial schedule of this INITIAL
COLLABORATIVE AGREEMENT by JULY 31, 2009 at the latest.

     

    
      
        
        

      

      
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                5.

              	
                FORCE
      MAJEURE

              

      

    

    

    Neither Party shall be liable for
failure to fulfil their obligations if and insofar as this failure is due to a
case of force majeure as this concept is defined in French
law.

     

    The Party which invokes the case of
force majeure must inform the other Party of this, without delay, by registered
letter with acknowledgement of receipt, specifying the reasons, foreseeable
consequences and their probable duration. It shall take all the necessary
measures to limit the consequences in case of force majeure.

     

    Failing agreement on the measures to be
taken and should this case of force majeure last more than twenty (20) days as
of the serving of notice, the Party to whom this case of force majeure is
opposed shall be entitled to cancel the INITIAL COLLABORATIVE AGREEMENT, without
the other Party being able to claim any additional
compensation.

     

    
      
        	
                6.

              	
                GOVERNING
      LAW AND ARBITRATION

              

      

    

    

    
      
        	
                6.1.

              	
                This INITIAL COLLABORATIVE
      AGREEMENT is subject to and will be interpreted in conformity with the
      French Law.

              

      

    

    

    
      
        	
                6.2.

              	
                In the event of any dispute
      arising out of or in connection with this INITIAL COLLABORATIVE AGREEMENT,
      the Parties agree to submit the matter to settlement proceedings under the
      International Chamber of Commerce rules by three (3) arbitrators appointed
      in accordance with the said rules of Arbitration. The seat of the Court of
      Arbitration will be Paris, France. The language of arbitration will
      be the English
language.

              

      

    

    

    All arbitration awards shall be final
and binding for both Parties and both Parties agree to be bound thereby and
shall act accordingly.

    

    
      
        	
                7.

              	
                ENTRY
      INTO EFFECT – DURATION

              

      

    

    

    This INITIAL COLLABORATIVE AGREEMENT
will enter into effect and be binding upon the Parties, once signed by the duly
authorized representatives of both Parties, on the Effective Date and will
remain in effect until the AGREEMENT is signed.  If no AGEEMENT is
entered into, this INITIAL COLLABORATIVE AGREEMENT shall remain in effect until
completion of the scope of work contained in Addendum 1 hereto by THORIUM
POWER.

    

    Upon receipt of written notice by either
Party of the other Party’s breach of the material terms of this INITIAL
COLLABORATIVE AGREEMENT, which notice shall specifically describe the claim of
breach, the breaching Party shall have ten (10) business days from the receipt
of the notice of breach (the “Cure
Period”) to cure such
breach.  Upon the failure to cure such breach within the Cure Period,
the noticing Party may, at its option, terminate this INITIAL COLLABORATIVE
AGREEMENT.  Notwithstanding the foregoing, if the breaching Party
cures such lack of performance after the Cure Period and prior to termination by
the noticing Party, the noticing Party shall not be entitled to terminate the
INITIAL COLLABORATIVE AGREEMENT in accordance with this Article
7.  Termination in accordance with this Article 7 shall be without
prejudice to the accrued rights and obligations of the parties accrued as of the
date of termination.

     

    
      
        
        

      

      
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                8.

              	
                CONFIDENTIALITY

              

      

    

    

    This Article 8 is in addition to
those certain Confidentiality and
Non-Disclosure Agreements between the Parties dated as of January
7th, 2009 and June 11, 2009.

    

    Except as provided below, the Parties
agree that the terms of this INITIAL COLLABORATIVE AGREEMENT and any information
in connection herewith (whether written or oral) (“Information”) which is
disclosed by one Party (“Disclosing Party”) to the other (“Receiving Party”)
shall be kept confidential by the Receiving Party and shall not be disclosed to
a third party without the prior written consent of the Disclosing
Party.

    

    The obligations of confidentiality set
out in this Article 8 shall survive the expiration of this INITIAL COLLABORATIVE
AGREEMENT and shall subsist for a period of ten (10) years thereafter in the
event the AGREEMENT is not signed.

    

    Notwithstanding the foregoing, the
Receiving Party shall have no obligation of confidentiality with respect to any
information disclosed by the other Party that:

    

    
      	
              a.  

            	
              is now in the public domain or
      subsequently enters the public domain without fault or negligence on the
      part of the Receiving Party, its employees, or its affiliates ;
      or

            

    

    
      	
              b.  

            	
              can be demonstrated by
      documentation or other competent proof to have been in the Receiving
      Party’s possession prior to disclosure by the Disclosing Party;
      or

            

    

    
      	
              c.  

            	
              is properly received by the
      Receiving Party from a third party with a valid legal right to disclose
      such information and such third party is not under confidentiality
      agreement to the Disclosing Party;
or

            

    

    
      	
              d.  

            	
              is required to be disclosed
      pursuant to any order of a court having jurisdiction or any lawful action
      of a government or regulatory agency;
  

            

    

    
      	
              e.  

            	
              is required to be disclosed by
      applicable law or stock exchange rule;
  or

            

    

    
      	
              f.  

            	
              the Receiving Party’s employees
      who have no knowledge of the disclosing party’s confidential information
      subsequently develop such information
  independently.

            

    

    

    
      
        	
                9.

              	
                INTELLECTUAL
      PROPERTY

              

      

    

    

    9.1 - Background
Knowledge

    « Background Knowledge » shall mean all
knowledge, documents, know-how, software, data, specifications, plans,
processes, and more generally all information, whatever its form, as well as all
intellectual property rights (such as but not limited to patents, designs,
copyright), which a Party
owned prior to the effective date of the order for work to be performed by
THORIUM POWER pursuant to a scope of work (an “Order”) or which have been
developed or acquired later by such Party independently from any performance of
the Order.

    

    
      
        
        

      

      
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    9.1.1 - AREVA’s Background
Knowledge

    AREVA’s Background Knowledge provided to
THORIUM POWER in order for THORIUM POWER to perform the Order shall remain the
property of AREVA.

    AREVA shall authorize THORIUM POWER and
its potential subcontractors, to the exclusion of any other third party, to use
its Background Knowledge for the sole purpose of performing the
Order.

    

    THORIUM POWER undertakes to respect
AREVA’s Background Knowledge by (i) not copying or reproducing by any means or
under any form whatsoever such Background Knowledge in all or in
part except as may be
necessary in order to perform the Order and/or (ii) not using it for any other
purpose than the one strictly necessary to the performance of the Order and only
until such Order remains valid. Consequently, THORIUM POWER (i) undertakes not
to use AREVA’s Background Knowledge after the expiration or termination date of
the Order and (ii) vouches for the respect of the present Article by any of its
potential subcontractors.

    

    9.1.2 – THORIUM POWER’s Background
Knowledge

    THORIUM POWER’s Background Knowledge
provided to AREVA in the course of the performance of the Order shall remain the
property of THORIUM POWER. THORIUM POWER shall list with the Final Report all
patents, designs and copyrights necessary for AREVA in order to expoit the
Results; provided, however,
that such listing of patents, designs and copyrights shall not transfer to AREVA
in and of itself any ownership of interest in such intellectual
property.

    

    THORIUM POWER shall authorize AREVA to
use its Background Knowledge for the sole purpose of verifying and evaluating
the Results to determine the scope of further collaborative
agreements.

    

    AREVA undertakes to respect THORIUM
POWER’S Background Knowledge by (i) not copying or reproducing by any means or
under any form whatsoever such Background Knowledge in all or in part and/or
(ii) not using it for any other purpose than the one strictly necessary to the
performance of the Order and only until such Order remains valid. Consequently,
AREVA undertakes not to use THORIUM POWER’s Background Knowledge after the
expiration or termination date of the Order, except to the extent such use
relates to the Results.

    

    Acceptance of the Order by THORIUM POWER
implies the granting to
AREVA of a non exclusive right of use on its Background Knowledge necessary to
use the Results, as relating to AREVA’s LWRs only, either commercially or not,
including for research purposes, for AREVA’s activities. Such licence shall be
granted worldwide, and for the duration of the legal period of protection of the
abovementioned intellectual property rights or, when regarding know-how, as long
as such know-how is not in the public domain.

    

    The financial consideration for such
licence shall be a lump sum which is already included in the price of the
Order.

    

    9.2 - Results

    « Results » shall mean all knowledge,
information or results, whether patentable or not, methods, know-how, data,
software, and any document (such as but not limited to data bases or any other
kind of data gathering, all reports, plans, drawings, specifications, processes)
whatever their media (specifically paper or digital technology) and which have
been created or generated during performance of the Order or included in the
Deliverables.

     

    
      
        
        

      

      
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    9.2.1 – Principle

    THORIUM POWER assigns to AREVA, for its
sole benefit, any and all parts of the Results as well as the intellectual
property rights attached hereto, solely to the extent that such Results and
intellectual property rights as relating to AREVA’s LWRs only, as
their production goes along.  THORIUM POWER shall have full ownership
of any Results and intellectual property rights arising from the work performed
for reactors other than AREVA’s LWRs.  For the
avoidance of doubt, THORIUM POWER shall retain full ownership of any Results and
intellectual property rights for the work performed for Russian VVER-type
reactors.

    

    No public communication about the
Results as relating to
AREVA’s LWRs may be made by THORIUM POWER without the prior’s written consent of
AREVA.

     

    The price of the Order comprises the
lump sum price of abovementioned assignment to AREVA of the Results as well as
of intellectual property rights attached hereto as relating to AREVA’s
LWRs.  AREVA shall thus be free to use such Results as it wishes and
to decide upon the appropriateness and choice of any legal protection to be
implemented regarding said Results.  THORIUM POWER undertakes not to
restrain the use of such Results by AREVA and specifically through any
intellectual property right.

    

    9.2.2 - Author’s Rights
–

    If the Results comprise, in all or in
part, creations which are subject to protection by author’s rights, then all
such creations which are made in performing the Order or included in the
Deliverables (hereinafter referred to as “Creations”), as relating to AREVA’s LWRs, shall be the
exclusive property of AREVA, the transfer of ownership being implemented as soon
as each Creation comes into existence.  Creations related to reactors
other than AREVA’s LWRs shall be the exclusive property of THORIUM
POWER.  For the avoidance of doubt, Creations related to Russian
VVER-type reactors shall be the exclusive property of THORIUM
POWER.

    Therefore, THORIUM POWER, which
acknowledges being the author of the Creations, or at least the assignee of the
author’s rights on said Creations, assigns to AREVA all intellectual property
rights on Creations relating to AREVA’s LWRs, except THORIUM POWER’s moral right
hereon, regardless of the considered work, including individual work,
collaboration work (developed together with THORIUM POWER’s employees) or
collective work and for any and all use means, especially those described as
follows:

    

    a) The exclusive right to reproduce
without any limitation on number, digitize, duplicate, print, record in all or
in part each Creation relating to AREVA’s LWRs, for whatever reason and in any
manner, specifically by any technical process, upon any medium known or yet to
be known at the time of execution of the Order and in any
format;

    

    b) The right to translate, which
includes the right to establish any version or have such established, in the
French language or any foreign language, on all or part of each such Creation
relating to AREVA’s LWRs;

     

    
      
        
        

      

      
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    c) The right to adapt, arrange, modify,
correct errors and the right for AREVA to alter or have any third party alter
each such Creation relating to AREVA’s LWRs in all or in part, whether in
writing, orally, through data communication, digitally, etc. and for any kind of
use ;

    

    d) The exclusive rights to publish,
broadcast, edit and re-edit without any limitation on the number of editions.
Such rights shall include the right to photocopy and all derivative rights
thereof, to commercialize, grant or assign the rights of use, the right to rent
and lend copies of each
Creation relating to AREVA’s LWRs in its original version or any adapted,
arranged, modified, corrected, altered or translated version, either free of
charge or against payment;

    

    e) The exclusive right to represent,
exhibit, display, broadcast and use all or part of each Creation relating to AREVA’s LWRs in its original version or
any adapted, arranged, modified, corrected, altered or translated version,
through any means of communication to the public known to this day and
specifically through public reciting, television broadcasting, broadcasting,
satellite transmission, initial or secondary cable television, active or
passive, though public screening, disclosure in a public area, digital
disclosure on line or on a media, public presentation and any other
means;

    

    f) The right to use, monitor and service
the Creations relating to AREVA’s LWRs;

    

    g) The right to integrate in all or in
part, with or without any modifications, the Creations;

    

    h) The right to reverse engineering the
Creations relating to AREVA’s LWRs.

    

    AREVA shall be entitled to a worldwide
use of the aforementioned rights for commercial or non-commercial purposes for
its own activities and for as long as the legal protection of said rights shall
last (and without any limitation of any kind regarding edition, broadcasting,
rerun or use).

    

    THORIUM POWER transfers to AREVA all
property rights on the material form of Creations relating to AREVA’s LWRs,
allowing their copy in great numbers and their adaptation.

    

    AREVA shall be entitled to retrocede by
any means, specifically by a transfer, license, or any other legal means, all or
part of the acquired intellectual property relating to AREVA’s LWRs rights to
any third party it may chose.

    

    The payment linked to the transfer of
intellectual rights as defined in the present Section is expressly included in
the price of the Order.

    

    9.2.3 - Third parties’ intellectual
property rights

    In the event that THORIUM POWER desires,
in its sole discretion, to obtain third party intellectual property rights for
the performance of the
Order, THORIUM POWER undertakes to obtain from said third parties an assignment
or a license upon such rights of use on aforementioned intellectual property
rights to its own benefit with a right to sublicense to
AREVA.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    This assignment/licence shall be
assigned/granted to AREVA for any and all use, for commercial or non commercial
purposes, including research purposes, for its own activities, worldwide, and
for as long as aforementioned rights shall be legally protected or, regarding
know-how, until such know-how is in the public domain.

    

    As regards the transfer of author’s
economic rights owned by third parties on the Creations, its length and details
shall be in conformity with the terms and conditions of Article 9.2.2
above.

    

    The payment for such assignment or
license is expressly included in the price of the Order.

    

    9.2.4 - Specific case regarding
employees

    a) Subrogation in employees’
rights

    The following terms shall apply to
inventions and data bases, such list not being restrictive, made by employees of
THORIUM POWER throughout the performance of the Order (“employees” shall mean
any natural person working under the authority of the Supplier or on behalf of
the latter). THORIUM POWER shall have its potential subcontractors comply with
the same undertakings towards their own employees as set forth in the present
Article.

    THORIUM POWER  undertakes to
explicitly ascribe to its employees the carrying out of the studies, research
and developments as necessary for the performance of the Order so as to allow
the automatic devolution of the rights of said employees to THORIUM POWER, and
thereafter to AREVA.

    

    THORIUM POWER shall be responsible for
the payment of any potential additional pay due to its employees
inventors.

    

    THORIUM POWER vouches for the
performance by its employees of all formalities, such as the signing of a power
of attorney, deed of transfer or declarations, as necessary for AREVA to legally
protect the Results.

    

    b) Transfer of employees’ author’s
rights to THORIUM POWER

    

    In order to allow the transfer of
author’s rights THORIUM POWER undertakes to have the author’s economic rights of
its employees who are the authors of Creations and/or of drawings and patterns,
within the limit of their moral rights, assigned to it under the terms and
conditions of Article 9.2.2.

    

    9.3 - Warranties

    THORIUM POWER warrants that it owns or
is the assignee of all intellectual property rights attached to the Results and
to any Background Knowledge upon which AREVA has been granted a license as per
Article 9.1.2, specifically of copyrights of the various performers of the
Results, whether they are employees or third parties such as
subcontractors.

    

    THORIUM POWER warrants that the Results
do not infringe any existing intellectual property rights of a third party or an
employee of THORIUM POWER or of any of its subcontractors.

     

    
      
        
        

      

      
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    Consequently, THORIUM POWER shall hold
AREVA harmless against any claim or action by the beneficiary (third party,
THORIUM POWER’s employee or subcontractor) or THORIUM POWER itself regarding the
ownership and/or the use of any intellectual property right or private and
personal rights linked to the Results, and shall indemnify AREVA against any
costs, damages, attorney’s fees and expenses which might be incurred as a
consequence thereof. THORIUM POWER shall assist AREVA in the event of any action
brought against the latter with respect to any alleged infringement of
intellectual property rights or private and personal rights linked to the
Results. Moreover, should such claim or action be successful, THORIUM POWER
shall be responsible for obtaining from such third party, or subcontractor, at
no cost to AREVA, a transfer, license or sublicense of the concerned
intellectual property right or the authorization to use the private and personal
rights from the third party or the employee and for paying the corresponding
fees or royalties in order to ensure compliance with the Order and the peaceful
use of the Results by AREVA, failing what, and with the prior consent of AREVA,
THORIUM POWER shall modify the Results. If such modification is not conceivable,
AREVA shall be entitled to terminate as of right the Order with an immediate
effect, notwithstanding damages which AREVA could claim against THORIUM
POWER.

    

    THORIUM POWER shall warrant AREVA in the
same way regarding Background Knowledge licensed under Article
9.1.2.

    

    9.4 - Disclaimer of
Warranties.

    Except as expressly set fort herein,
neither Party makes, and each Party specifically disclaims all representations
and warranties, express or implied, including but not limited to, implied
warranties of merchantibility, fitness for a particular purpose,
non-infringement, and arising from course of dealing or course of performance.
Neither party warrants to the other the accuracy, timeliness, completeness or
adequacy of the products and services offered by that Party, and neither Party
shall be liable to the other with respect to any actual or alleged inaccuracy,
untimeliness, incompleteness of inadequacy, of that Party’s products unless
caused by the gross negligence or willful misconduct of that Party. Neither
Party shall make any stratement respecting the products and services of the
other that is contradictory or inconsistent with these
disclaimers.

    

    9.5 – Limitation of
Liability

    Anything in this agreement tot the
contrary notwithstanding, in no event shall either party have any liability to
the other Party or any other person for consequential, incidental, punitive,
exemplary or special damages (including lost profits, data and revenues) arising
out of or in any manner in connection with this agreement, the performance of
breach hereof or the subject matter hereof, regardless of the for of action
(including negligence or strict liability) and wheter or no the other Party has
been adivsed of, or otherwise might have anticipated the possibility of such
damages.

    

    In no event shall THORIUM POWER have any
monetary liability to AREVA, arising persuant to this Initial Collaboration
Agreement in excess of amounts actually paid to THORIUM POWER
hereunder.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
              10

            	
              MISCELLANEOUS

            

    

    

    
      	
              10.1

            	
              Each Party shall bear its own
      expenses in connection with the execution of this INITIAL COLLABORATIVE
      AGREEMENT.

            

    

    

    
      
        	
                10.2

              	
                The Parties acknowledge and agree
      that by signing this INITIAL COLLABORATIVE AGREEMENT they comply and shall
      comply with all relevant laws, rules and regulations, in the operation or
      performance of obligations under this INITIAL COLLABORATIVE
      AGREEMENT.

              

      

    

    

    IN WITNESS WHEREOF
the Parties have executed
this INITIAL COLLABORATIVE AGREEMENT in two originals as of the day and year
written above.

     

     

     

    
      	On
      this day of July 23rd  2009	On
      this day of July 23rd  2009
	 	 
	
              ON BEHALF OF
      AREVA

            	
              ON BEHALF OF THORIUM
      POWER

            
	 	 
	 	 
	 	 
	 	 
	 	 
	
              Patrick
      CHAMPALAUNE

            	
              Seth
      GRAE,

            
	
              Senior
      Vice President, Purchasing

            	
              President &
      CEO

            

    

    

    
      
        
        

      

      
        12Exhibit
4.1

    

     

    NEW
GENERATION BIOFUELS HOLDINGS, INC.

    WARRANT

    TO
PURCHASE COMMON STOCK

     

    Issue
Date:   July 22, 2009 (the “Issue
Date”)

    

    THIS WARRANT IS TO CERTIFY
THAT, the registered holder hereof or its permitted assigns (the “Holder”), is
entitled, subject to the terms set forth below, to purchase from New Generation
Biofuels Holdings, Inc., a Florida corporation (the “Company”), ________
shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), at
$1.60 per share, as adjusted from time to time pursuant to Section 2 hereof (the
“Exercise
Price”). Subject to the terms and conditions hereof, this Warrant may be
exercised by the Holder at any time after the six month anniversary of the Issue
Date but prior to the fifth anniversary of the Issue Date (as further defined
herein, the “Expiration Date”), in
whole or in part.

    

    Section
1.                                Exercise
of Warrant.

     

    (a)           Mechanics of
Exercise.  (i)  This Warrant may be exercised by the
Holder, in whole or in part, by delivering to the Company at its office
identified in Section
14 hereof (i) a written notice of exercise, in the form attached hereto
as Exhibit A
(the “Notice of
Exercise”), including the number of Warrant Shares to be delivered
pursuant to such exercise, (ii) this Warrant and (iii) (A) payment to the
Company of an amount equal to the Exercise Price multiplied by the number of
Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise
Price”) in cash or wire transfer of immediately available funds or (B) by
notifying the Company that this Warrant is being exercised pursuant to a
Cashless Exercise (as defined in Section 1(c)).

     

    (ii)           The
Holder shall not be required to surrender this Warrant in order to effect an
exercise hereunder, provided that this Warrant is surrendered to the Company by
the second Business Day following the date on which the Company has received
each of the Notice of Exercise and the Aggregate Exercise Price (the “Exercise Delivery
Documents”).  On or before the first Business Day following the
date on which the Company has received the Exercise Delivery Documents, the
Company shall transmit by facsimile an acknowledgment of confirmation of receipt
of the Exercise Delivery Documents to the Holder and the Company’s transfer
agent (the “Transfer
Agent”).  The Company shall deliver any objection to the
Exercise Delivery Documents on or before the second Business Day following the
date on which the Company has received all of the Exercise Delivery
Documents.  In the event of any discrepancy or dispute, the records of
the Company shall be controlling and determinative in the absence of manifest
error.  On or before the third Business Day following the date on
which the Company has received all of the Exercise Delivery Documents and after
the Company has received this Warrant (the “Share Delivery
Date”), the Company shall, (A) provided that the Transfer Agent is
participating in The Depository Trust Company (“DTC”) Fast Automated
Securities Transfer Program (the “FAST Program”) and so
long as the certificates therefor are not required to bear a legend regarding
restriction on transferability, upon the request of the Holder, credit such
aggregate number of shares of Common Stock to which the Holder is entitled
pursuant to such exercise to the Holder’s or its designee’s balance account with
DTC through its Deposit Withdrawal Agent Commission system, or (B) if the
Transfer Agent is not participating in the FAST Program or if the certificates
are required to bear a legend regarding restriction on transferability, issue
and dispatch by overnight courier to the address as specified in the Notice of
Exercise, a certificate, registered in the Company’s share register in the name
of the Holder or its designee, for the number of shares of Common Stock to which
the Holder is entitled pursuant to such exercise.  Upon delivery of
the Exercise Delivery Documents and surrender of this Warrant, the Holder shall
be deemed for all corporate purposes to have become the holder of record of the
Warrant Shares with respect to which this Warrant has been exercised,
irrespective of the date such Warrant Shares are credited to the Holder’s DTC
account or the date of delivery of the certificates evidencing such Warrant
Shares, as the case may be.

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    (iii)           If
this Warrant is submitted in connection with any exercise pursuant to this
Section 1(a) and the number of Warrant Shares represented by this Warrant
submitted for exercise is greater than the number of Warrant Shares being
acquired upon an exercise, then the Company shall as soon as practicable and in
no event later than five (5) Business Days after any exercise and at its own
expense, issue a new Warrant representing the right to purchase the number of
Warrant Shares purchasable immediately prior to such exercise under this
Warrant, less the number of Warrant Shares with respect to which this Warrant is
exercised.  The Company shall pay any and all taxes that may be
payable with respect to the issuance and delivery of Warrant Shares upon
exercise of this Warrant.

     

    (b)           Limitations on
Exercises.  (i)  The Company shall not effect the
exercise of this Warrant, and the Holder shall not have the right to exercise
this Warrant, to the extent that after giving effect to such exercise, such
Person (together with such Person’s affiliates) would beneficially own in excess
of 4.99% (the “Maximum
Percentage”) of the shares of Common Stock outstanding immediately after
giving effect to such exercise.  For purposes of the foregoing
sentence, the aggregate number of shares of Common Stock beneficially owned by
such Person and its affiliates shall include the number of shares of Common
Stock issuable upon exercise of this Warrant with respect to which the
determination of such sentence is being made, but shall exclude shares of Common
Stock which would be issuable upon (A) exercise of the remaining, unexercised
portion of this Warrant beneficially owned by such Person and its affiliates and
(B) exercise or conversion of the unexercised or unconverted portion of any
other securities of the Company beneficially owned by such Person and its
affiliates (including, without limitation, any convertible notes or convertible
preferred stock or warrants) subject to a limitation on conversion or exercise
analogous to the limitation contained herein.  Except as set forth in
the preceding sentence, for purposes of this paragraph, beneficial ownership
shall be calculated in accordance with Section 13(d) of the Exchange
Act.  For purposes of this Warrant, in determining the number of
outstanding shares of Common Stock, the Holder may rely on the number of
outstanding shares of Common Stock as reflected in (1) the Company’s most recent
Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the
Securities and Exchange Commission, as the case may be, (2) a more recent public
announcement by the Company or (3) any other notice by the Company or the
transfer agent setting forth the number of shares of Common Stock
outstanding.  For any reason at any time, upon the written or oral
request of the Holder, where such request indicates that it is being made
pursuant to this Warrant, the Company shall within two Business Days confirm
orally and in writing to the Holder the number of shares of Common Stock then
outstanding.  In any case, the number of outstanding shares of Common
Stock shall be determined after giving effect to the conversion or exercise of
securities of the Company by the Holder and its affiliates since the date as of
which such number of outstanding shares of Common Stock was
reported.  By written notice to the Company, the Holder may increase
or decrease the Maximum Percentage to any other percentage not in excess of
4.99% specified in such notice; provided, that any
such increase will not be effective until the 61st day
after such notice is delivered to the Company.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (ii)           This
Warrant may not be exercised to acquire Warrant Shares to the extent that when
added to those already beneficially owned by the Holder, for purposes of any
shareholder rights plan or agreement that may be adopted by the Company in the
future, such Warrant Shares would cause such Holder to acquire beneficial
ownership of the percentage of shares of the outstanding Common Stock of the
Company which would make the Holder (or any group including the Holder) an
“Acquiring Person” thereunder.

    

    (c)           Cashless
Exercise.  The Holder may, in its sole discretion, but only at
times the Registration Statement is not effective or an exemption from
registration is not available, exercise this Warrant in
whole or in part and, in lieu of making the cash payment otherwise contemplated
to be made to the Company upon such exercise in payment of the Aggregate
Exercise Price, elect instead to receive upon such exercise the “net number” of
shares of Common Stock determined according to the following formula (a “Cashless
Exercise”):

     

    (X) =
Y
(A-B)

      A

    

    
      	
              Where

            	
              (X)
      = 

            	
              the
      net number of Warrant Shares to be issued to theHolder;

            

    

     

    
      	
            	
              (Y)
      = 

            	
              the
      number of Warrant Shares issuable upon exercise of this Warrant in
      accordance with the terms of this Warrant by means of a cash exercise
      rather than a cashless exercise;

            

    

     

    
      	
            	
              (A)
      = 

            	
              the
      Market Price (as defined below);
and

            

    

     

    
      	
            	
              (B)
      = 

            	
              the
      Exercise Price of this Warrant, as adjusted from time to
    time.

            

    

     

    Solely
for the purposes of this paragraph, Market Price shall be calculated as of the
Trading Day (defined for this purpose as any day on which the equity securities
markets are generally open for trading) immediately preceding the date which the
Notice of Exercise is deemed to have been sent to the Company pursuant to Section 14 hereof
(such preceding date, the “Valuation Date”). As
used herein, the phrase “Market Price” shall
mean (i) if the Warrant Shares is listed or admitted for trading on a national
securities exchange, an automated quotation system or the Over the Counter
Bulletin Board, the last reported sale price per share of the Warrant Shares on
the Valuation Date, or, in case no such reported sale takes place on such day or
is reported, then the average of the last reported per share bid and ask prices
for the Warrant Shares on such date (or if such bid and ask prices are not
available on such date, the most recent preceding date), in either case as
officially reported by such securities exchange, quotation system or Bulletin
Board on which the Common Stock is listed or admitted to trading, (ii) if not so
listed or admitted for trading, the fair market value of a share of the Warrant
Shares as determined by the Company’s board of directors in good faith, or (iii)
if such exercise is in connection with a merger or consolidation of the Company
in which the Company is not the survivor or in which the Warrant Shares are
exchanged for cash or other securities or a sale of all or substantially all of
the assets of the Company (collectively, a “Sale”), the implied
price per share of the Warrant Shares resulting from such Sale.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    For
purposes of Rule 144(d) promulgated under the Securities Act, as in effect
on the date hereof, assuming the Holder is not an affiliate of the Company, it
is intended that the Warrant Shares issued in a Cashless Exercise shall be
deemed to have been acquired by the Holder, and the holding period for the
Warrant Shares shall be deemed to have commenced, on the closing date of the
offering pursuant to which the Company was obligated to issue this
Warrant.

     

    (d)           The
stock certificate or certificates for the Warrant Shares to be delivered in
accordance with this Section 1 shall be in
such denominations as may be specified in said notice of exercise and shall be
registered in the name of the Holder or such other name or names as shall be
designated in said notice. Such certificate or certificates shall be deemed to
have been issued and the Holder or any other person so designated to be named
therein shall be deemed to have become the holder of record of such shares,
including to the extent permitted by law the right to vote such shares or to
consent or to receive notice as shareholders, as of the time said notice is
delivered to the Company as aforesaid.

     

    (e)           The
Company shall pay all expenses payable in connection with the preparation, issue
and delivery of stock certificates under this Section 1; provided, however, that the
Holder shall be responsible for all transfer taxes resulting from the fact that
any certificate issued in respect of the Warrant Shares is not in the name of
the Holder.

     

    (f)           All
Warrant Shares issuable upon the exercise of this Warrant in accordance with the
terms hereof shall be validly issued, fully paid and nonassessable, and free
from all liens and other encumbrances thereon, other than liens or other
encumbrances created by the Holder or restrictions upon transfer under federal
or state securities laws.

     

    (g)           In
no event shall the warrant be exercised for less than one whole share of
the Company except in the case of the final exercise of the warrant, and in such
event the Company shall deliver in cash to such holder an amount equal to such
fractional interest.

     

    Section
2.                                Adjustment
of Warrant Shares and Exercise Price.

     

    If the
Company at any time on or after the Issue Date subdivides (by any stock split,
stock dividend, recapitalization, reorganization, scheme, arrangement or
otherwise) one or more classes of its outstanding shares of Common Stock into a
greater number of shares, the number of Warrant Shares will be proportionately
increased and the Exercise Price in effect immediately prior to such subdivision
will be proportionately reduced. If the Company at any time on or after the
Issue Date combines (by any stock split, stock dividend, recapitalization,
reorganization, scheme, arrangement or otherwise) one or more classes of its
outstanding shares of Common Stock into a smaller number of shares, the number
of Warrant Shares will be proportionately decreased and the Exercise Price in
effect immediately prior to such combination will be proportionately increased.
Any adjustment under this Section 2 shall become effective at the close of
business on the date the subdivision or combination becomes
effective.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    Section
3.                                Rights
Upon Distribution of Assets.

     

    If the
Company shall declare or make any dividend or other distribution of its assets
or rights to acquire its assets (but not including distributions subject to
Section 4) to
the record holders of shares of Common Stock, by way of return of capital or
otherwise (including, without limitation, any distribution of cash, stock or
other securities, property or options by way of a dividend, spin off,
reclassification, corporate rearrangement, scheme of arrangement or other
similar transaction) (a “Distribution”), then
any Exercise Price in effect immediately prior to the close of business on the
record date fixed for the determination of holders of shares of Common Stock
entitled to receive the Distribution shall be reduced, effective as of the close
of business on such record date, to a price determined by multiplying such
Exercise Price by a fraction of which (i) the numerator shall be the Weighted
Average Price of the shares of Common Stock on the Trading Day immediately
preceding such record date minus the value of the Distribution (as determined in
good faith by the Company’s Board of Directors) applicable to one share of
Common Stock, and (ii) the denominator shall be the Weighted Average Price of
the shares of Common Stock on the Trading Day immediately preceding such record
date.

     

    Section
4.                                Purchase
Rights.

     

    In
addition to any adjustments pursuant to Section 2 above, if at any time prior to
the Expiration Date the Company grants, issues or sells any Options, Convertible
Securities or rights to purchase stock, warrants, securities or other property
pro rata to the record holders of shares of Common Stock (the “Purchase Rights”),
then the Holder will be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which the Holder could have
acquired if the Holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant (without regard to any limitations on the
exercise of this Warrant) immediately before the date on which a record is taken
for the grant, issuance or sale of such Purchase Rights, or, if no such record
is taken, the date as of which the record holders of shares of Common Stock are
to be determined for the grant, issue or sale of such Purchase
Rights.

     

    Section
5.                                Fundamental
Transaction.

     

    Upon the
occurrence of any Fundamental Transaction, the Successor Entity shall succeed
to, and be substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Warrant referring to the “Company” shall
refer instead to the Successor Entity), and may exercise every right and power
of the Company and shall assume all of the obligations of the Company under this
Warrant with the same effect as if such Successor Entity had been named as the
Company herein.  Upon consummation of the Fundamental Transaction, the
Successor Entity shall deliver to the Holder confirmation that there shall be
issued upon exercise of this Warrant at any time after the consummation of the
Fundamental Transaction, in lieu of the shares of the Common Stock (or other
securities, cash, assets or other property purchasable upon the exercise of the
Warrant prior to such Fundamental Transaction), such shares of stock,
securities, cash, assets or any other property whatsoever (including warrants or
other purchase or subscription rights) which the Holder would have been entitled
to receive upon the happening of such Fundamental Transaction had this Warrant
been converted immediately prior to such Fundamental Transaction, as adjusted in
accordance with the provisions of this Warrant.  In addition to and
not in substitution for any other rights hereunder, prior to the consummation of
any Fundamental Transaction pursuant to which holders of shares of Common Stock
are entitled to receive securities or other assets with respect to or in
exchange for shares of Common Stock (a “Corporate Event”),
the Company shall make appropriate provision to insure that the Holder will
thereafter have the right to receive upon an exercise of this Warrant within 90
days after the consummation of the Fundamental Transaction but, in any event,
prior to the Expiration Date, in lieu of the shares of the Common Stock (or
other securities, cash, assets or other property) purchasable upon the exercise
of the Warrant prior to such Fundamental Transaction, such shares of stock,
securities, cash, assets or any other property whatsoever (including warrants or
other purchase or subscription rights) which the Holder would have been entitled
to receive upon the happening of such Fundamental Transaction had the Warrant
been exercised immediately prior to such Fundamental Transaction.  The
provisions of this Section shall apply similarly and equally to successive
Fundamental Transactions and Corporate Events and shall be applied without
regard to any limitations on the exercise of this Warrant.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    Section
6.                                Reservation
and Authorization of Capital Stock.

     

    The
Company shall, at all times on and after the date hereof, reserve and keep
available for issuance such number of its authorized but unissued shares of
Common Stock as will be sufficient to permit the exercise in full of all
outstanding Warrants.

     

    Section
7.                                Noncircumvention.

     

    The
Company hereby covenants and agrees that the Company will not, by amendment of
its Articles of Incorporation, Bylaws or through any reorganization, transfer of
assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, and will at all
times in good faith carry out all the provisions of this Warrant and take all
action as may be required to protect the rights of the
Holder.  Without limiting the generality of the foregoing, the Company
(i) shall not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above the Exercise Price then in
effect, (ii) shall use all reasonable efforts to take all such actions as
may be necessary or appropriate in order that the Company may validly and
legally issue fully paid and nonassessable shares of Common Stock upon the
exercise of this Warrant and (iii) shall, so long as any of the Warrants are
outstanding, take all action necessary to reserve and keep available out of its
authorized and unissued shares of Common Stock, solely for the purpose of
effecting the exercise of the Warrants, the number of shares of Common Stock as
shall from time to time be necessary to effect the exercise of the Warrants then
outstanding (without regard to any limitations on exercise).

     

    Section
8.                                Rights
of Shareholders.

     

    Nothing
contained herein shall be construed to confer upon the holder of this Warrant,
as such, any of the rights of a shareholder of the Company or any right to vote
for the election of directors or upon any matter submitted to shareholders at
any meeting thereof, or to give or withhold consent to any corporate action
(whether upon any recapitalization, issuance of stock, reclassification of
stock, change of par value or change of stock to no par value, consolidation,
merger, conveyance, or otherwise) or to receive notice of meetings, or to
receive dividends or subscription rights or otherwise until the Warrant shall
have been exercised and the certificates representing the Warrant Shares shall
have been issued, as provided herein.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    Section
9.                                Stock
and Warrant Books.

     

    The
Company will not at any time, except upon dissolution, liquidation or winding
up, close its stock books or warrant books so as to result in preventing or
delaying the exercise of any Warrant.

     

    Section
10.                                Limitation
of Liability.

     

    No
provisions hereof, in the absence of affirmative action by the Holder to
purchase Warrant Shares hereunder, shall give rise to any liability of the
Holder to pay the Exercise Price or as a shareholder of the Company (whether
such liability is asserted by the Company or creditors of the
Company).

     

    Section
11.                                Transfer,
Division and Combination.

     

    This
Warrant may be transferred without the written consent of the Company. Any
Warrants issued upon the transfer of this Warrant shall be numbered and shall be
registered in a Warrant Register as they are issued. The Company shall be
entitled to treat the registered holder of any Warrant on the Warrant Register
as the owner in fact thereof for all purposes and shall not be bound to
recognize any equitable or other claim to, or interest in, such Warrant on the
part of any other person, and shall not be liable for any registration of
transfer of Warrants that are registered or to be registered in the name of a
fiduciary or the nominee of a fiduciary unless made with the actual knowledge
that a fiduciary or nominee is committing a breach of trust in requesting such
registration or transfer, or with the knowledge of such facts that its
participation therein amounts to bad faith. This Warrant shall be transferable
only on the books of the Company upon delivery thereof duly endorsed by the
Holder or by his duly authorized attorney or representative, or accompanied by
proper evidence of succession, assignment, or authority to transfer. In all
cases of transfer by an attorney, executor, administrator, guardian, or other
legal representative, duly authenticated evidence of his or its authority shall
be produced. Upon any registration of transfer, the Company shall deliver a new
Warrant or Warrants to the person entitled thereto. Notwithstanding the
foregoing, the Company shall have no obligation to cause Warrants to be
transferred on its books to any person if, in the opinion of counsel to the
Company, such transfer does not comply with the provisions of the Securities Act
and the rules and regulations thereunder. This Warrant may be divided or
combined with other warrants of like tenor and representing in the aggregate a
like amount, upon presentation at the aforesaid office of the Company, together
with a written notice specifying the names and denominations in which new
Warrants are to be issued, signed by the Holder or its agent or attorney. The
Company shall pay all expenses in connection with the preparation, issue and
delivery of Warrants under this Section 11. The
Company agrees to maintain at its aforesaid office books for the registration of
the Warrants.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    Section
12.                                Loss,
Destruction of Warrant Certificates.

     

    Upon
receipt of evidence satisfactory to the Company of the loss, theft, destruction
or mutilation of any warrant and, in the case of any such loss, theft or
destruction, upon receipt of indemnity and/or security satisfactory to the
Company or, in the case of any such mutilation, upon surrender and cancellation
of such Warrant, the Company will make and deliver, in lieu of such lost,
stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and
representing the right to purchase the same aggregate number of Warrant
Shares.

     

    Section
13.                                Amendment
and Waiver.

     

    Except as
otherwise provided herein, the provisions of this Warrant may be amended and the
Company may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, if (but only if) the Company has obtained the
written consent from the majority of the holders of the Warrant Series; provided, that no
such action (other than those contemplated by Sections 3 or 5) may increase the
exercise price of this Warrant or decrease the number of shares or class of
stock obtainable upon exercise of this Warrant without the written consent of
the Holder.  No such amendment shall be effective to the extent that
it applies to less than all of the holders of the Warrant Series then
outstanding.

     

    Section
14.                                Notices
Generally.

     

    Any
notice, request, consent, other communication or delivery pursuant to the
provisions hereof shall be in writing and shall be sent by one of the following
means: (i) by registered or certified first class mail, postage prepaid, return
receipt requested; (ii) by facsimile transmission with confirmation of receipt;
(iii) by overnight courier service; or (iv) by personal delivery, and shall be
properly addressed to the Holder at the last known address or facsimile number
appearing on the books of the Company, or, except as herein otherwise expressly
provided, to the Company at its principal executive office at New Generation
Biofuels Holdings, Inc., 1000 Primera Boulevard, Suite 3130, Lake Mary, Florida
32746, (Fax: 321-257-1794), Attention: Cary J. Claiborne, or such other address
or facsimile number as shall have been furnished to the party giving or making
such notice, demand or delivery.

     

    Section
15.                                Successors
and Assigns.

     

    This
Warrant shall bind and inure to the benefit of and be enforceable by the parties
hereto and their respective permitted successors and assigns.

     

    Section
16.                                Governing
Law.

     

    This
Warrant shall be governed by and construed and enforced in accor­dance with,
and all questions concerning the construction, validity, interpretation and
performance of this Warrant shall be governed by, the internal laws of the State
of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the
State of New York.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    Section
17.                                Dispute
Resolution Regarding Exercise Price and Warrant Shares.

     

    In the
case of a dispute as to the determination of the Exercise Price or the
arithmetic calculation of the Warrant Shares, the Company shall submit the
disputed determinations or arithmetic calculations within two Business Days of
receipt of the Exercise Notice giving rise to such dispute, as the case may be,
to the Holder.  If the Holder and the Company are unable to agree upon
such determination or calculation of the Exercise Price or the Warrant Shares
within five Business Days of such disputed determination or arithmetic
calculation being submitted to the Holder, then the Company shall, within two
Business Days submit the disputed arithmetic calculation of the Warrant Shares
to the Company’s independent, outside accountant.  The Company shall
cause the accountant to perform the determinations or calculations and notify
the Company and the Holder of the results no later than ten Business Days from
the time it receives the disputed determinations or
calculations.  Such accountant’s determination or calculation shall be
binding upon all parties absent demonstrable error.  The expenses of
the accountant will be borne by the Company unless the accountant determines
that the determination of the Exercise Price or the arithmetic calculation of
the Warrant Shares by the Holder was demonstrably in error, in which case the
expenses of the accountant will be borne by the Holder.

     

    Section
18.                                Certain
Definitions.

    

    As used
in this Warrant, unless the context otherwise requires:

    

    “Business Day” shall
mean any day other than Saturday, Sunday or other day on which commercial banks
in The City of New York are authorized by law to remain closed.

     

    “Fundamental
Transaction” shall mean that the Company shall, directly or indirectly,
in one or more related transactions, (i) consolidate or merge with or into
another Person, (ii) sell, assign, transfer, convey or otherwise dispose of all
or substantially all of the properties or assets of the Company to another
Person, (iii) allow another Person to make a purchase, tender or exchange offer
that is accepted by the holders of more than the 50% of either the outstanding
shares of Common Stock (not including any shares of Common Stock held by the
Person or Persons making or party to, or associated or affiliated with the
Persons making or party to, such purchase, tender or exchange offer), (iv)
consummate a stock purchase agreement or other business combination (including,
without limitation, a reorganization, recapitalization, spin-off or scheme of
arrangement) with another Person whereby such other Person acquires more than
the 50% of the outstanding shares of Common Stock (not including any shares of
Common Stock held by the other Person or other Persons making or party to, or
associated or affiliated with the other Persons making or party to, such stock
purchase agreement or other business combination), (v) reclassify its Common
Stock or (vi) any “person” or “group” (as these terms are used for purposes of
Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of 50% of the aggregate ordinary voting power represented by issued
and outstanding Common Stock.

     

    “Eligible Market”
shall mean the NYSE Amex, The New York Stock Exchange, Inc., The NASDAQ Global
Market, The NASDAQ Global Select Market, The NASDAQ Capital Market, or the OTC
Bulletin Board.®

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended.

     

    “Expiration Date”
shall mean the fifth anniversary of the Issuance Date or, if such date falls on
a day other than a Business Day, the next date that is a Business
Day.

     

    “Parent Entity” of a
Person means an entity that, directly or indirectly, controls the applicable
Person and whose common stock or equivalent equity security is quoted or listed
on an Eligible Market, or, if there is more than one such Person or Parent
Entity, the Person or Parent Entity with the largest public market
capitalization as of the date of consummation of the Fundamental
Transaction.

     

    “Person” shall mean an
individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization, any other entity and a
government or any department or agency thereof.

     

    “Registration
Statement” shall mean the Company’s Registration Statement on Form S-3
(No. 333-156449).

     

    “Securities Act” shall
mean the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     

    “Successor Entity”
shall mean the Person formed by, resulting from or surviving any Fundamental
Transaction or the Person (or Parent Entity of such Person, if the Successor
Entity does not have common stock or equivalent equity security is quoted or
listed on an Eligible Market) with which such Fundamental Transaction shall have
been entered into.

     

    “Warrant” shall mean
this Warrant and all additional or new warrants issued upon division or
combination of, or in substitution for, this Warrant. All such additional or new
warrants shall at all times be identical as to terms and conditions and date,
except as to the number of Warrant Shares for which they may be
exercised.

     

    “Warrant Shares” shall
mean the shares of the Company’s Common Stock purchasable by the holder of this
Warrant upon the exercise of this Warrant.

     

    “Warrant Series” shall
mean all warrants substantial identical to this Warrant other than the identity
of the Holder issued on or about the Issue Date.

     

    [Signature
Page Follows]

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    IN WITNESS WHEREOF, the
Company has caused this Warrant to be signed in its name by its duly authorized
officer as of the date first written above.

     

     

    
      
        	 	NEW GENERATION
      BIOFUELS HOLDINGS, INC.	 
	 	 	 	 
	 	
                By:
      

              	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

     

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    EXHIBIT A

    NOTICE
OF EXERCISE

     

    (to be
executed only upon exercise of Warrant)

    

     

    
      	
              To:

            	New Generation
      Biofuels Holdings, Inc.
	 	1000 Primera
      Boulevard, Suite 3130
	 	Lake Mary, Florida
      32746
	 	Attn: Cary J.
      Claiborne
	 	 
	 	or such other
      address notified by the Company to the
Holder.

    

     

    

    The
undersigned holder hereby exercises the right to purchase _________________ of
the shares of Common Stock (“Warrant Shares”) of
New Generation Biofuels Holdings, Inc., a Florida corporation (the “Company”), evidenced
by the attached Warrant to Purchase Common Stock (the “Warrant”).  Capitalized
terms used herein and not otherwise defined shall have the respective meanings
set forth in the Warrant.

    

    1.           Form of Exercise
Price.  The Holder intends that payment of the Exercise Price
shall be made as:

    

    £           a
“Cash Exercise”
with respect to ______________ Warrant Shares.

     

    £          
a
“Cashless
Exercise” with respect to ________________ Warrant
Shares, only in the event permitted by Section 1(c) of the Warrant.

    

    2.           Payment of Exercise
Price.  In the event that the holder has elected a Cash
Exercise with respect to some or all of the Warrant Shares to be issued pursuant
hereto, the holder shall pay the Aggregate Exercise Price in the sum of
$____________ to the Company in accordance with the terms of the
Warrant.

    

    3.           Delivery of Warrant
Shares.  The Company shall deliver to the holder
____________ Warrant Shares in accordance with the terms of the
Warrant.

    

    4.           Representations and
Warranties.  By its delivery of this Exercise Notice, the
undersigned represents and warrants to the Company that in giving effect to the
exercise evidenced hereby the holder will not beneficially own in excess of the
number of shares of Common Stock (determined in accordance with Section 13(d) of
the Securities Exchange Act of 1934) permitted to be owned under Section 2(b) of
this Warrant to which this notice relates.

    

    5.           Delivery.  The
shares of Warrant Shares shall be delivered to the following:

     

    ______________________________________

    
      ______________________________________

      
        ______________________________________

      

    

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    [SIGNATURE
OF HOLDER]

     

    Name of
Investing Entity:

     

    

     

     

    
      
        	 
	Signature of Authorized
      Signatory of Investing Entity:
	 
	 
	
                Name
      of Authorized Signatory:

              
	 
	 
	
                Title
      of Authorized Signatory:

                 

              

      

    

    
      	
               

               

              Date:__________________________

            

    

    

    
 

    -2-

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