Document:

<PAGE>

August 2, 2004

Ms. Pamela D.A. Reeve
35 Swan Road
Winchester, MA 01890

RE:  SEPARATION AGREEMENT AND RELEASE

Dear Pam:

      This letter agreement will confirm our mutual understanding with respect
to the arrangements we have made in connection with the termination of your
position as an officer of Lightbridge, Inc. ("Lightbridge" or the "Company") and
the termination of your employment.

      1.    RESIGNATION AS OFFICER; TERMINATION OF EMPLOYMENT.

      You hereby confirm your resignation as an officer of the Company effective
August 2, 2004. Your status as an employee and all employee benefits will
terminate effective August 13, 2004 (the "Employment Termination Date") except
as otherwise provided herein.

      2.    RESIGNATION AS DIRECTOR.

      You hereby irrevocably tender your resignation from the Board, effective
August 2, 2004.

      3.    SEVERANCE PAYMENTS.

      If you sign this letter agreement and release (and do not timely revoke
your agreement as set forth in paragraph 16), then (a) you will be paid a lump
sum amount equal to twelve months of your current base salary (less required
withholdings and deductions for taxes) and (b) you will continue to receive your
current base salary (less required withholdings and deductions for taxes) on the
Company's normal payroll cycle from the date hereof until the first anniversary
of the Employment Termination Date. You agree that the payments described in
this letter agreement are above and beyond and in full satisfaction of any
payments or compensation otherwise owed to you under the terms of your
employment with Lightbridge, your employment agreement dated August 16, 1996
(the "Employment Agreement"), or as required by law.

      4.    ACCRUED PAID VACATION AND TIME OFF.

      All accrued but unused vacation time earned through the Employment
Termination Date will be paid on that date.

<PAGE>

      5.    VOICEMAIL, COMPUTER, AND RETURN OF COMPANY PROPERTY.

      Use of voicemail will be provided through October 31, 2004, and network
access will also be provided through the Employment Termination Date. You will
return all other property, equipment and materials of the Company, other than
the Company-owned automobile, laptop computer and wireless telephone currently
used by you (the "Retained Company Property"), to the Company promptly after the
Employment Termination Date. If you do not revoke your agreement within the time
period set forth in paragraph 16, the Company will thereupon assign ownership of
the Retained Company Property to you.

      6.    COBRA GROUP INSURANCE COVERAGE.

      As of the Employment Termination Date, you and your family members will be
eligible to continue your group health insurance coverage in accordance with the
federal COBRA law. Should you or any of your family members elect COBRA
continuation coverage for the eighteen month period immediately following the
Employment Termination Date, the Company shall be responsible for paying the
difference between the cost of COBRA continuation coverage and the premium
contribution amount applicable to you as of the Employment Termination Date,
subject to any applicable carrier and Company rate adjustments. After such
eighteen month period ends, if you or any of your family members elect to
continue COBRA coverage, you will be responsible for all of the premium
payments. Information about your rights under COBRA and forms for electing
continuation coverage will be provided to you by a separate letter on or about
the Employment Termination Date.

      7.    OUTPLACEMENT ASSISTANCE.

      To assist you in regard to outplacement, the Company will pay up to
$50,000 for outplacement services which are provided to you by a
Company-approved agency prior to the earlier of July 31, 2005 or the date you
commence new employment. Appropriate invoices for outplacement services should
be submitted promptly to the Company.

      8.    CONFIDENTIAL INFORMATION.

      You understand and agree that the Company's confidential information
belongs exclusively to the Company, and that the confidential information of the
Company's customers or of other organizations with which the Company does
business remains their exclusive property. You agree that you will not use or
disclose any such confidential information, whether for your benefit or for the
benefit of another, and that you will hold and treat such information as
confidential information, unless you have specific prior written authorization
from the Company to disclose it. Incorporated herein is a confidentiality and
non-competition agreement that was signed by you on or about July 17, 1990 and
which remains in effect according to its terms.

      9.    NON-DISPARAGEMENT; COOPERATION.

      You agree that you will not make any disparaging statements about the
Company or any of its subsidiaries, affiliates, officers, directors or
employees, or its business or prospects. The

                                      -2-
<PAGE>

Company and its executive officers and Directors agree that they will not make
any disparaging statements about you.

      Through the first anniversary of the Employment Termination Date, you
agree to provide assistance and support as requested from time to time by the
Board of Directors without additional compensation with respect to any matters
required for the orderly transition of your former employment responsibilities
or otherwise related to the business of the Company; provided, however, that you
will not be required to devote more than eight hours per month to providing such
assistance and support.

      10.   RELEASE AND WAIVER.

      This letter agreement and the agreement referenced in paragraph 8 contain
the entire agreement between you and the Company (and supersede any prior
communications, written or oral) with respect to your employment by the Company
and the termination of such employment, and with respect to all matters
pertaining thereto including, without limitation, those set forth in the
Employment Agreement. This letter agreement shall be in complete and final
settlement of any and all causes of action or claims that you have had, now have
or may now have, in any way related to or arising out of or in connection with
such employment and/or its termination or pursuant to any federal, state or
local employment laws, regulations, executive orders or other requirements,
including without limitation Massachusetts General Laws c. 151B ("Unlawful
Discrimination"), Title VII of the Civil Rights Act of 1964, and the Age
Discrimination in Employment Act of 1967. In consideration of the pay and
benefits that you will receive under this letter agreement, you hereby release,
waive and discharge any and all such causes of action or claims (including
without limitation claims for attorney's fees and costs) against the Company,
its parent, subsidiary and affiliated organizations, and their respective past,
present and future directors, officers, agents, employees, successors and
assigns, and you hereby agree that, to the extent permitted by law, neither you
nor any of your heirs or personal representatives will ever assert in any forum
any such cause of action or claim. THIS MEANS YOU MAY NOT SUE LIGHTBRIDGE FOR
ANY CURRENT OR PRIOR CLAIMS ARISING OUT OF YOUR EMPLOYMENT WITH OR TERMINATION
FROM LIGHTBRIDGE.

      You further agree that you will not bring any lawsuits, file any charges
or complaints, or make any other demands against Lightbridge, or further pursue
any lawsuits, cases or complaints already brought, based on your employment by
Lightbridge. You further represent that you have no current or pending actions,
charges, lawsuits, or complaints against Lightbridge. You acknowledge and
understand that the consideration provided for in this letter agreement
constitutes a full, fair and complete payment for the release and waiver of all
of your possible claims. You acknowledge and understand that Lightbridge does
not owe you anything for your employment in addition to the consideration set
forth in this letter agreement.

      11.   COMPLIANCE.

      All payments to be made to you in accordance with the terms of this letter
agreement, and the performance by the Company of its other obligations hereunder
shall be conditioned on your compliance with your obligations hereunder.

                                      -3-
<PAGE>

      12.   GOVERNING LAW.

      The parties intend this letter agreement to be governed by the substantive
laws of The Commonwealth of Massachusetts.

      13.   CHALLENGE TO VALIDITY OF LETTER AGREEMENT.

      Lightbridge and you shall never bring a proceeding to challenge the
validity of this letter agreement. If you do, you will first be required to pay
back to Lightbridge any monies received from Lightbridge under paragraph 3 of
this letter agreement.

      14.   ENFORCEMENT.

      In the event that you violate any of the terms of paragraphs 8 or 9 of
this letter agreement or the Company determines that you have breached your
fiduciary duty to the Company, then any payments required to be made hereunder
shall cease. In the event that you violate paragraphs 8 or 9, in addition to any
money damages that Lightbridge may be owed, Lightbridge shall also be entitled
to seek and obtain an order enjoining any future violations.

      15.   CONSIDERATION PERIOD.

      In signing this letter agreement, you acknowledge that you understand its
provisions, that your agreement is knowing and voluntary, that you have been
afforded a full and reasonable opportunity of at least 21 days to consider its
terms and to consult with or seek advice from an attorney or any other person of
your choosing, and that you have been advised by the Company to consult with an
attorney prior to executing this letter agreement and the release and waiver of
claims in paragraph 10.

      16.   REVOCATION PERIOD.

      For a period of seven (7) days following your execution of this letter
agreement and release, you may revoke your agreement, and this letter agreement
and release shall not become effective or enforceable until this seven (7) day
revocation period has expired. No payments provided for by this letter agreement
will be made until after this seven-day period has expired without your revoking
your agreement. You understand and acknowledge that the terms of your employment
and the Company's usual severance policies or practices would have provided you
less severance pay and benefits than those provided to you under this letter
agreement.

      17.   STOCK OPTIONS.

      You are currently the holder of certain options to purchase shares of the
Company's common stock, $.01 par value per share. The Company agrees that,
notwithstanding the terms of the option agreements and related plans, all such
options shall be deemed to be vested in full immediately following the
expiration of the revocation period described in paragraph 16, and shall remain
exercisable in full in accordance with their terms until 18 months following the

                                       -4-
<PAGE>

expiration of such revocation period. You understand that, as a result of the
foregoing agreements, your options will no longer qualify for incentive stock
option treatment under the Internal Revenue Code.

      If you agree to the foregoing, would you kindly sign and return the
enclosed copy of this letter agreement, whereupon this letter agreement and such
copy will constitute a binding agreement between you and the Company on the
basis set forth above.

Very truly yours,

LIGHTBRIDGE, INC.

By:  /s/ Eugene DiDonato                                      8/2/04
     -----------------------------------             --------------------------
     Eugene DiDonato                                 Date
     Vice President and General Counsel

AGREED: /s/ Pamela D.A. Reeve                                8/2/04
        --------------------------------             ---------------------------
        Employee's Signature                         Date signed

                                      -5-<PAGE>

                              EMPLOYMENT AGREEMENT

      This Employment Agreement is made as of the 2nd day of August, 2004 (the
"Effective Date") by and between Lightbridge, Inc., a Delaware corporation (the
"Company"), and Robert E. Donahue of Northborough, Massachusetts (the
"Executive").

      WHEREAS, the Company desires to employ the Executive as its interim
President and Chief Executive Officer; and

      WHEREAS, the Company and the Executive desire to establish certain terms
and conditions governing the Executive's employment by the Company;

      NOW, THEREFORE, in consideration of the premises and the mutual promises
hereinafter set forth, the Company and the Executive agree as follows:

      1. Employment. The Company hereby employs the Executive, and the Executive
accepts employment with the Company. The Executive's titles and duties during
his term of employment shall be those of interim President and Chief Executive
Officer of the Company. As such, the Executive shall report directly to the
Company's Board of Directors. During his employment, the Executive shall also
continue to serve as a member of the Board of Directors.

      2. Term of Employment. The Executive agrees to serve for a term of
employment commencing on the Effective Date and ending on the first anniversary
of the Effective Date. The Board of Directors may terminate the Executive's
employment at any time prior to the first anniversary of the Effective Date,
with or without Cause, provided, however, that if the Board of Directors
terminates the Executive's employment without Cause prior to March 31, 2005, he
shall continue to receive his base salary, as specified in Section 3(a), until
March 31, 2005. As used in this Agreement, "Cause" shall mean (a) the
Executive's commission of acts or omissions constituting a felony or involving
moral turpitude, including, but not limited to, fraud, dishonesty, betrayal of
confidential information, misappropriation of assets of the Company or
commission of a crime; (b) the Executive's commission of acts or omissions
constituting a material breach of this Agreement, any other agreement between
the Executive and the Company, Company policies and procedures or the Employee's
duty of loyalty to the Company; or (c) the Executive's willful refusal or
failure to perform the duties assigned to him by the Board.

      3. Compensation.

            (a) During the term of the Executive's employment, the Company shall
pay the Executive a base salary, payable in accordance with the Company's
standard schedule for salary payments to its executives (but no less frequently
than monthly) in arrears, in equal installments at an annual rate equal to
$390,000.

            (b) Within 30 days following the Effective Date, the Executive and
the Board of Directors (or a committee thereof) shall agree in writing upon
specific measurable goals and

<PAGE>

management business objectives (the "MBOs") to be achieved by each of December
31, 2004, March 31, 2005 and June 30, 2005. If the Executive is employed by the
Company until the first anniversary of the Effective Date and has achieved all
of the MBOs, he shall be entitled to receive a bonus equal to 100% of his base
salary (the "Bonus Amount"). If the Executive's employment terminates prior to
the first anniversary of the Effective Date and he has achieved all of the MBOs
scheduled to be achieved by the date of termination (and, in the case of
termination prior to December 31, 2004, he has achieved all of the MBOs
scheduled to be achieved by such date), the Executive shall be entitled to
receive a bonus equal to (i) the number of months that the Executive served as
an employee divided by 12, multiplied by (ii) the Bonus Amount.

            (c) The Company shall grant the Executive a non-statutory option to
purchase 300,000 shares of the Company's common stock, $0.01 par value per share
("Common Stock"), at an exercise price equal to the closing price of the common
stock, as reported by the Nasdaq National Market, on the date of grant (the
"Stock Option"). The Stock Option shall be granted under the Company's 2004
Stock Incentive Plan (the "Plan"), and, except as otherwise specified herein,
shall be subject to the Company's standard terms and conditions for options
granted under the Plan. The Stock Option shall be vested as to 100,000 of the
shares purchasable thereunder on the date of grant. The remaining 200,000 shares
purchasable under the Stock Option shall vest in full on the fifth anniversary
of the date of grant, provided, however, that the vesting of such remaining
shares is subject to acceleration as follows: (i) in the event that the average
closing price of Common Stock (as reported by the Nasdaq National Market) over
any 20 consecutive trading day period beginning on or after the Effective Date
and ending on or before the date the Executive's employment under this Agreement
as interim President and Chief Executive Officer terminates (the "Average
Closing Price") equals or exceeds $7.50, the Stock Option shall immediately vest
as to 100,000 of such remaining shares; and (ii) in the event that the Average
Closing Price during such period equals or exceeds $10.00, the Stock Option
shall immediately vest in full. The Stock Option shall have a term of 10 years
from the Effective Date, and shall terminate 90 days after the Executive ceases
to serve as interim President and Chief Executive Officer of the Company under
this Agreement.

            (d) All payments of salary and incentive compensation to the
Executive shall be made after deduction of any taxes which are required to be
withheld with respect thereto under applicable federal and state laws.

      4. Office and Fringe Benefits. The Executive shall be provided with an
office, secretary and other facilities and services commensurate with his
position as a senior executive of the Company.

      5. Expenses. The Company shall reimburse the Executive for all reasonable
business expenses incurred by the Executive in connection with his employment by
the Company, including, without limitation, expenses of travel and
entertainment. The Company shall promptly reimburse the Executive for all such
expenses upon presentation of appropriate vouchers, receipts and other
supporting documents as reasonably required by the Company.

                                      -2-
<PAGE>

      6. Duty to Perform Services. The Executive shall devote his full time
during normal business hours to rendering services to the Company hereunder, and
shall exert all reasonable efforts in the rendering of such services. Nothing in
this Agreement shall prohibit the Executive from:

            (a)   making and managing passive investments;

            (b)   serving on the board of directors of any company, provided
                  that the Executive provides notice to the Company prior to
                  accepting any such position;

            (c)   participating in professional organizations; and

            (d)   engaging in religious, charitable or other community or
                  nonprofit activities, provided none of the foregoing shall
                  interfere with the Executive's duties hereunder.

      The Executive agrees that in the rendering of all services to the Company
and in all aspects of his employment as a senior level executive of the Company,
he will comply in all material respects with all directives, policies, standards
and regulations from time to time established by the Board of Directors of the
Company to the extent they are not in conflict with this Agreement.

      7. Vacations; Holidays; Sick Time. The Executive shall be entitled to
vacation time, holiday time and sick leave in accordance with the Company's
policies for senior executive officers, as in effect from time to time.

      8. Other Agreements. In addition to this Agreement, the Executive shall
also enter into the Company's standard form of employee confidentiality and
non-competition agreement, a copy of which is attached hereto as Exhibit A (the
"Employee Agreement"). Nothing in this Agreement shall supersede or modify the
Executive's obligations under the Employee Agreement or under any other existing
non-competition or non-disclosure agreement with the Company.

      9. Notices. All notices, requests, demands and other communications
required by or permitted under this Agreement shall be in writing and shall be
sufficiently delivered if delivered by hand or sent by registered or certified
mail, postage prepaid, to the parties at their respective addresses listed
below:

            (a) if to the Executive:

                  Robert E. Donahue
                  296 Howard Street
                  Northborough, MA  01532

            (b) if to the Company:

                                      -3-
<PAGE>

                  Lightbridge, Inc.
                  30 Corporate Drive
                  Burlington, MA 01803
                  Attn:  Chairman of the Board of Directors

Any party may change such party's address by such notice to the other party.

      10. Governing Law. This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of The Commonwealth of Massachusetts,
without regard to its principles of conflicts of laws.

      11. Binding Upon Successors. This Agreement shall be binding upon, and
shall inure to the benefit of, the parties hereto and their respective heirs,
legal representatives, successors and assigns.

      12. Waivers and Amendments.

            (a) This Agreement may be amended, modified or supplemented, and any
obligation hereunder may be waived, only by a written instrument executed by the
parties hereto. The waiver by any party hereto of a breach of any provision of
this Agreement shall not operate as a waiver of any subsequent breach.

            (b) No failure on the part of any party to exercise, and no delay in
exercising, any right or remedy hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or remedy by such party
preclude any other or further exercise thereof or the exercise of any other
right or remedy. All rights and remedies hereunder are cumulative and are in
addition to all other rights and remedies provided by law, agreement or
otherwise.

      13. Hiring of Non-Interim President and CEO. During the Executive's term
of employment, the Nominating and Governance Committee of the Board of Directors
will be conducting a search for a person to serve as President and Chief
Executive Officer of the Company on a non-interim basis. In the event that the
Executive is selected for, and agrees to serve in, such position, the Executive
and the Board of Directors shall negotiate a new employment agreement. In the
event that the Executive is not selected for, or does not agree to serve in,
such position, the Executive agrees that he will resign from the offices of
President and Chief Executive Officer on a date designated by the Board of
Directors, and will cooperate fully with the Company in effecting the transition
of duties and responsibilities to his successor. The Company and the Executive
agree that the Company shall be under no obligation to provide the Executive any
compensation in connection with any termination of his employment except as
expressly specified in Sections 2 and 3 of this Agreement.

                                      -4-
<PAGE>

      IN WITNESS WHEREOF, the Company and the Executive have executed this
Agreement as of the Effective Date.

                                        LIGHTBRIDGE, INC.

                                        By: /s/ Rachelle B. Chong
                                            ------------------------------------
                                        Its Chairperson, Compensation Committee

                                        /s/ Robert E. Donahue
                                        ----------------------------------------
                                        Robert E. Donahue

                                      -5-
<PAGE>

                                                                       EXHIBIT A

                                LIGHTBRIDGE, INC.

                  CONFIDENTIALITY AND NON-COMPETITION AGREEMENT
                                      INDEX

<TABLE>
<CAPTION>
                                                        PAGE
                                                        ----
<S>                                                     <C>
 1. CONFIDENTIAL MATERIALS AND INFORMATION                1
          A. SOFTWARE                                     2
          B. OTHER PRODUCTS AND SERVICES                  2
          C. BUSINESS PROCEDURES                          2
          D. MARKETING PLANS AND CUSTOMER LISTS           2
          E. CUSTOMER INFORMATION                         3
          F. OTHER INFORMATION NOT GENERALLY KNOWN        3

 2. EMPLOYEE OBLIGATIONS                                  3
          A. NON-DISCLOSURE                               3
          B. PREVENT DISCLOSURE                           3
          C. REMOVAL OF MATERIALS                         3
          D. RETURN ALL MATERIALS                         3
          E. DISCLOSURE OF "MOONLIGHTING"                 3
          F. CONFLICTING OBLIGATIONS AND RIGHTS.          4

 3. NON-COMPETITION                                       4
          A. COVENANTS NOT TO COMPETE                     4
          B. COVENANTS NOT TO SOLICIT                     4

 4. IDEAS AND INVENTIONS                                  4

 5. WRITTEN RECORDS                                       5

 6. PUBLICATIONS                                          5

 7. ENFORCEMENT                                           5
          A. POTENTIAL DISMISSAL                          5
          B. INJUNCTIVE RELIEF                            5
          C. WARRANTY OF NON-DISCLOSURE OF THIRD-PARTY
             CONFIDENTIAL INFORMATION                     5

 8. TERMINATION                                           5

 9. ENTIRE AGREEMENT                                      5

10. CONTROLLING LAW                                       5

11. SEVERABILITY                                          6
</TABLE>

<PAGE>

                                LIGHTBRIDGE, INC.

                  CONFIDENTIALITY AND NON-COMPETITION AGREEMENT

            THIS AGREEMENT is entered into between Lightbridge, Inc., (the
"Company") and myself, the undersigned employee of the Company. The Company now
has and expects to develop confidential and proprietary materials and
information of independent economic value which I recognize must be carefully
protected for the Company to be successful. In consideration of my employment by
the Company and as a condition of said employment, the Company and I, intending
to be legally bound, agree as follows:

1. CONFIDENTIAL MATERIALS AND INFORMATION.

      The following materials and information, whether having existed, now
existing, or to be developed or created during the term of my employment by the
Company (herein referred to collectively as "Confidential Information") are
covered by the Agreement:

      A. SOFTWARE. All information relating to existing software products and
software in various stages of research and development which are not generally
known to the public or within the computer industry or trade in which the
Company competes (such as know-how, design specifications, algorithms,
procedures, techniques, and information processing processes) and the physical
embodiments of such information (such as design notes, source code, object code,
load modules, flow charts, logic, diagrams, procedural diagrams, documentation,
printouts, manuals, and any other proposals, and any other written or
machine-readable expressions of such information as are fixed in any tangible
media).

      B. OTHER PRODUCTS AND SERVICES. All information relating to design,
consulting and other proprietary products or services, whether existing or in
various stages of research and development, which are not generally known to the
public or within the computer industry or trade in which the Company competes
(such as know-how, specifications, data, designs, processes, techniques,
methodologies and strategies) and the physical embodiments of such information
(such as drawings, manuals, course materials, training aids, proposals,
printouts, contracts, documentation, and any other written or machine-readable
expressions of such information as are fixed in any tangible media).

      C. BUSINESS PROCEDURES. All information concerning or relating to the way
the Company conducts its business and which is not generally known to the public
(such as internal business procedures, licensing techniques and practices,
supplier names and other vendor information, financial information, distributor
information and employee data) and the physical embodiments of such information.

        Lightbridge, Inc.- Confidentiality and Non-Competition Agreement     -2-
<PAGE>

      D. MARKETING PLANS AND CUSTOMER LISTS. All information pertaining to the
Company's marketing plans and strategies, forecasts and projections, marketing
and pricing practices, procedures and policies, financial data, credit terms,
goals and objectives, quoting practices, procedures and policies, and customer
data including the customer lists, contracts, representatives, requirements and
needs, specifications, data provided by or about prospective existing or past
customers and licensing and other contract terms applicable to such customers,
and the physical embodiments of such information (such as licenses and other
agreements, customer lists, printouts, databases, marketing plans, marketing
reports, strategic business plans, marketing analyses and management reports,
seminar and class attendee rosters, trade show or exhibit attendee listings,
listings of potential customers and leads, and any other written or
machine-readable expressions of such information as are fixed in any tangible
media).

      E. CUSTOMER INFORMATION. Any information in whatever form provided to the
Company by a customer in confidence or which is not generally known to the
public.

      F. OTHER INFORMATION NOT GENERALLY KNOWN. Any information in addition to
the foregoing which is not generally known to the public or within the computer
industry or trade in which the Company competes which gives or may give the
Company an advantage over its competitors, and the physical embodiments of such
information in any tangible form, whether written or machine-readable in nature.

2. EMPLOYEE OBLIGATIONS.

      During my employment with the Company, I acknowledge and agree that I have
had, and will continue to have, access to Confidential Information and materials
and will occupy a position of trust and confidence with respect to the Company's
affairs and business. I have and will continue to take the following steps to
preserve the confidential and proprietary nature of the Confidential Information
and materials:

      A. NON-DISCLOSURE. During or after my employment with the Company, I will
not use, disclose or transfer any of the Confidential Information or materials
other than as authorized by the Company within the scope of my duties with the
Company, and will not use in any way other than in the Company's business any
Confidential Information, including information or material received by the
Company from others and intended by the Company to be kept in confidence by its
recipients. I understand that I am not allowed to sell, license or otherwise
exploit any products (including software in any form) which embody in whole or
in part any Confidential Information or materials.

      B. PREVENT DISCLOSURE. I will take all reasonable precautions to prevent
the inadvertent or accidental exposure of Confidential Information.

      C. REMOVAL OF MATERIALS. I will not remove any Confidential Information
from the Company's premises or make copies of such materials except for use
within the scope of my duties with the Company in the Company's business.

        Lightbridge, Inc.- Confidentiality and Non-Competition Agreement     -3-
<PAGE>

      D. RETURN ALL MATERIALS. I will return to the Company all Confidential
Information and copies thereof at any time upon the request of the Company, and
in any event and without such a request prior to the termination of my
employment with the Company. I agree not to retain any copies of any
Confidential Information after my termination of employment for any reason.

      E. DISCLOSURE OF "MOONLIGHTING". During my employment with the Company, I
agree to disclose to the Company any other job, consulting work, directorship,
or employment with another person or entity.

      F. CONFLICTING OBLIGATIONS AND RIGHTS. I agree to inform the Company of
any apparent conflicts between my work for the Company and (i) any obligations I
may have to preserve the confidentiality of another's proprietary information or
materials or (ii) any rights I claim to any inventions or ideas before
performing that work (or causing it to be performed). Otherwise, the Company may
conclude that no such conflict exists and I agree thereafter to make no such
claim against the Company. The Company shall receive such disclosure in
confidence and consistent with the objective of avoiding any conflict of
obligations and rights or the appearance of any conflict of interest.

3. NON-COMPETITION.

      A. COVENANTS NOT TO COMPETE. I acknowledge and agree that I will not,
during the term of my employment with the Company and for a period of one (1)
year immediately thereafter, either as an employee, employer, consultant, agent,
principal, partner, stockholder, corporate officer, director, or in any other
individual or representative capacity ("directly or indirectly"), either (i)
engage or participate in any business that is in competition in any manner
whatsoever with the business of the Company or (ii) have any professional
contract or relationship with any accounts of the Company for myself, directly
or indirectly, or with or in conjunction with any other person, persons, firm,
company, partnership or corporation engaged in any business that is in
competition in any manner with the business of the Company or from time to time
handled by the Company during the term of my employment with the Company.

      B. COVENANTS NOT TO SOLICIT. While employed by the Company and for a
period of one year following the termination of such employment, I shall not,
directly or indirectly, request, cause, solicit or induce any other employee of,
or any consultant to, the Company to perform work or services for any person or
entity other than the Company.

        Lightbridge, Inc.- Confidentiality and Non-Competition Agreement     -4-
<PAGE>

4. IDEAS AND INVENTIONS.

      I agree that all Confidential Information and all other discoveries,
inventions, ideas, concepts, trademarks, service marks, logos, processes,
computer programs or software, subroutines, source codes, object codes,
algorithms, machines, apparatuses, items of manufacture or composition of
matter, or any new uses therefor or improvements thereon, or any new designs or
modifications or configurations of any kind, or work or authorship of any kind,
including without limitation, compilations and derivative works, whether or not
patentable or copyrightable, conceived, developed, reduced to practice or
otherwise made by me, either alone or with others, and in any way related to the
present or proposed products, programs, services or business of the Company or
the tasks assigned to me during the course of my employment by the Company,
during the period of my employment by the Company, whether or not conceived,
developed, reduced to practice or made during my regular working hours or on the
Company's premises (collectively "Inventions"), and any and all services and
products which embody, emulate or employ any such Invention or Confidential
Information shall be the sole property of the Company and all copyrights,
patents, patent rights, trademarks and reproduction rights to, and other
proprietary rights in, each such Invention or Confidential Information, whether
or not patentable or copyrightable, shall belong exclusively to the Company. I
agree that all such Inventions shall constitute works made for hire under the
copyright laws of the United States and hereby assign and, to the extent any
such assignment cannot be made at the present time, agree to assign, the Company
any and all copyrights, patents and other proprietary rights I may have in any
such Invention, together with the right to file and/or own wholly without
restrictions applications for United States and foreign patents, trademark
registration and copyright registration and any patent, or trademark or
copyright registration issuing thereon.

5. WRITTEN RECORDS.

      I shall make and maintain adequate and current written records of all
Inventions and Confidential Information which by virtue of Section 4 are the
sole property of the Company and shall disclose same promptly, fully and in
writing to the Company's President or other duly authorized officer. During and
after the term of my employment by the Company, I shall execute, acknowledge,
seal and deliver all documents, including, without limitation, all instruments
of assignment, patent and copyright applications and supporting documentation,
and perform all acts, which the Company may request to secure its rights
hereunder and to carry out the intent of this Agreement. In furtherance of my
undertaking in the immediately preceding sentence, I specifically agree to
assist the Company, at the Company's expense, in every proper way to obtain for
its sole benefit, in any and all countries, patent, copyrights or other legal
protection for all Inventions and Confidential Information which by virtue of
Section 4 hereof are the sole property of the Company and for publications
pertaining to any of them. In no circumstances shall I be entitled to any of
them. In no circumstances shall I be entitled to any further compensation for
any action taken under this Section 5.

6. PUBLICATIONS.

      I agree not to submit any writing for publication or deliver any speech
that contains any information relating to the business of the Company, unless I
receive advance written clearance from the President of the Company.

        Lightbridge, Inc.- Confidentiality and Non-Competition Agreement     -5-
<PAGE>

7. ENFORCEMENT.

      A. POTENTIAL DISMISSAL. I acknowledge that I am subject to immediate
dismissal by the Company for any breach of this Agreement and that such a
dismissal will not relieve me from my continuing obligations under this
Agreement or from the imposition by a court of any judicial remedies, such as
money damages or an injunction for such a breach.

      B. INJUNCTIVE RELIEF. I understand that monetary damages will not be
sufficient to avoid or compensate for the unauthorized use or disclosure of any
of the Confidential Information or materials and that injunctive relief would be
appropriate to prevent any actual or threatened use or disclosure of such
information or materials.

      C. WARRANTY OR NONDISCLOSURE OF THIRD-PARTY CONFIDENTIAL INFORMATION. I
agree to indemnify, and hold harmless, the Company from any claim or recovery by
any third party referring or relating to the alleged disclosure or use of any
Confidential Information belonging to a third party.

8. TERMINATION.

      Notwithstanding anything contained herein to the contrary, in
consideration of my employment with the Company, I agree to conform to the rules
and regulations of the Company and I further understand and agree that my
employment and compensation can be terminated, with or without cause, at any
time, at the option of the Company or myself. In the event that I leave the
employ of the Company by my own request, at the request of the Company or
otherwise, the foregoing covenants shall remain in full force and effect as
independent covenants, regardless of any other covenants, terms or conditions in
this Agreement or any other Agreement.

9. ENTIRE AGREEMENT.

      This is my entire agreement with the Company with respect to its subject
matter, and memorializes the entirety of any prior oral or written, express or
implied negotiations, understandings and agreements. This Agreement may not be
changed in any respect except by a written agreement signed by both myself and
the President of the Company.

10. CONTROLLING LAW.

      This Agreement shall be governed and construed in accordance with the laws
of the Commonwealth of Massachusetts.

        Lightbridge, Inc.- Confidentiality and Non-Competition Agreement     -6-
<PAGE>

11. SEVERABILITY.

      The provisions of this Agreement shall be deemed severable, and the
invalidity or unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof. In the event of the invalidity or
unenforceability of any provision of this Agreement, the parties agrees to
substitute for such invalid or unenforceable provision a valid and enforceable
provision most nearly approximating in intent and effect the invalid or
unenforceable one.

      I understand that the Company may waive some of the requirements expressed
in this Agreement, but that such a waiver to be effective must be made in
writing by the Company President and should not in any way be deemed a waiver of
the Company's right to enforce any other requirements or provisions of this
Agreement.

      WHEREFORE, by my signature below, I acknowledge that I have read this
Agreement carefully and understanding that this document is a legally binding
Agreement, and that the understandings and agreements expressed in this document
are binding upon me.

      IN WITNESS WHEREOF, THE PARTIES HAVE DULY EXECUTED THIS AGREEMENT THIS 2ND
DAY OF AUGUST, 2004.

                                                LIGHTBRIDGE, INC.

                                                BY: /s/ EUGENE DIDONATO
                                                    ----------------------------

                                                EMPLOYEE:

                                                /s/ ROBERT E. DONAHUE
                                                --------------------------------
                                                           (SIGN HERE)

                                                NAME: ROBERT E. DONAHUE
                                                      --------------------------
                                                           (PLEASE PRINT)

                                                ADDRESS:  296 HOWARD STREET

                                                NORTHBOROUGH, MA 01532

        Lightbridge, Inc.- Confidentiality and Non-Competition Agreement     -7-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}]]