Document:

Unassociated Document

    AMENDMENT
NO. 1 TO WARRANT

    

    THIS AMENDMENT NO. 1 TO
WARRANT, dated as of the date
provided on the signature page hereto (this “Agreement”), is
entered into by and between WorldGate Communications, Inc., a Delaware
corporation (the “Company”), and the
person or entity under the heading “Holder” provided on the signature page
hereto (the “Holder”, and together
with the Company, the “Parties”).  All
capitalized terms used but not defined in this Agreement shall have the meanings
ascribed to them by that certain Warrant to Purchase Common Stock of WorldGate
Communications, Inc., dated September 24, 2007, issued by the Company to the
Holder and attached hereto as Exhibit A (the “Warrant”).

    

    RECITALS

    

    A.           WHEREAS, the Warrant entitles the Holder,
subject to the provisions of the Warrant, to purchase the Warrant Shares (as defined
on the signature page hereto) at an exercise price as provided in, and as adjusted from
time to time per the terms of, the Warrant (the “Exercise
Price”);

    

    B.           WHEREAS, in consideration for the Holder’s
immediate exercise of the
right to purchase shares of Common Stock underlying certain other warrants
issued by the Company simultaneously with the execution of
this Agreement, the Company has agreed to amend the
Warrant such that the Exercise Price of the Warrant shall be equal to the New Exercise
Price (as defined on the
signature page hereto);
and

    

    C.           WHEREAS, each of the Parties desires to enter
into this Agreement in order to amend the Warrant as set
forth herein.

    

    NOW, THEREFORE, in
consideration of the premises and the mutual covenants hereinafter contained,
the Parties agree as follows:

    

    1.           Amendment to Exercise
Price.  The Exercise Price set forth in the first sentence of
the first paragraph of the Warrant is hereby amended as of the date hereof to be
the New Exercise Price (as defined on the signature page
hereto) per share of Common Stock.

     

    2.           Termination of Certain
Agreements.  Each of the Current Agreements, with respect to
any rights or obligations between the Parties, shall be deemed terminated, void
and of no further force and effect, and none of the Parties shall have any
further liabilities or obligations under the Current Agreements
whatsoever.  For purposes of this Agreement, “Current Agreements”
means any agreements entered into in connection with, in any way related to or
arising from the Warrant, other than the Warrant itself and this
Agreement.

     

    3.           Exercise of
Warrant.  Upon any exercise of the Warrant, Holder acknowledges
and agrees that the Company shall effect delivery of the Warrant Shares by
delivering to the Holder or its nominee a physical certificate representing such
Warrant Shares and that such certificate representing the Warrant Shares shall
contain the following restrictive legend:

     

    THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN AND WILL NOT BE REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAW, AND MAY NOT BE OFFERED FOR SALE, SOLD OR TRANSFERRED
UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE
SECURITIES LAWS SHALL BE EFFECTIVE WITH RESPECT THERETO, OR AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS
AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE OR TRANSFER AND THE CORPORATION
RECEIVES AN OPINION OF COUNSEL (BOTH SUCH OPINION AND SUCH COUSEL BEING
REASONABLY ACCEPTABLE TO THE CORPORATION) TO SUCH EFFECT. SUBJECT TO COMPLIANCE
WITH THE REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS, THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE PLEDGED OR HYPOTHECATED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY THE
SHARES REPRESENTED BY THIS CERTIFICATE.  IN ADDITION, THE SHARES
REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED TO ANY PERSON OR ENTITY
ON OR BEFORE THE THIRTY-FIFTH (35TH) DAY
FOLLOWING THE ISSUANCE OF THE SHARES.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.           Representations and
Warranties.  By executing this Agreement, Holder represents and
warrants to the Company as follows:

     

    
      	
               
      

            	
              a.

            	
              The
      Holder hereby acknowledges and agrees that attached hereto as Exhibit A is
      a true, complete and valid copy of the Warrant as currently in effect
      prior to the amendment contemplated by this
  Agreement.

            

    

     

    
      	
               
      

            	
              b.

            	
              Holder
      has all necessary power and authority under all applicable provisions of
      law to execute and deliver this Agreement and to carry out its
      provisions.  All action on Holder’s part required for the lawful
      execution and delivery of this Agreement has been or will be effectively
      taken prior to the delivery of this Agreement by
  Holder.

            

    

     

    
      	
               
      

            	
              c.

            	
              Neither
      the execution and delivery by the Holder of this Agreement, nor the
      performance of the transactions performed hereunder by the Holder, will
      require any filing, consent, renegotiation or approval that has not
      previously been obtained or conflict with, result in any breach of or
      constitute a default under (i) any provision of any law, statute, rule or
      regulation, or any ruling, writ, injunction, order, judgment or decree of
      any court order or other governmental authority to which the Holder is
      subject, (ii) the organizational documents (if any) of the Holder, or
      (iii) any contract, governmental permit or other document to which the
      Holder is subject.

            

    

     

    
      	
               
      

            	
              d.

            	
              The
      Holder is the sole record and beneficial owner of the Warrant and the
      Holder has good title to the Warrant free and clear of any mortgage, lien,
      pledge, charge, security interest, encumbrance, conditional sales
      contract, transfer restriction, right of first refusal, voting trust
      agreement, preemptive right, power of attorney or other adverse claim,
      defect of title, limitation or restriction of any type or nature
      whatsoever.  No other person, firm, corporation or other entity
      has any right, title, claim, or interest in, to, or respecting any of the
      Warrant.

            

    

     

    
      	
               
      

            	
              e.

            	
              Holder
      understands that the Warrant and the Warrant Shares have not been
      registered under the Securities Act of 1933, as amended (the “Securities
      Act”).  The Warrant is being, and the Warrant Shares will
      be, acquired for Holder’s own account and not with the view to, or for
      resale in connection with, any distribution other than resales made in
      compliance with the Securities Act.  Holder has substantial
      experience in evaluating and investing in private placement transactions
      of securities similar to the Company so that Holder is capable of
      evaluating the merits and risks of its investment in the Company and has
      the capacity to protect its own interests.  Holder understands
      and agrees that the Warrant is being offered and will be sold in
      transactions in compliance with or exempt from the registration
      requirements of the Securities Act based in part upon Holder’s
      representations contained in this Agreement and, as a result, the Warrant
      and Warrant Shares may only be transferred if such securities are
      registered under the Securities Act or if the transfer is exempt from
      registration.  Holder must bear the economic risk of this
      investment indefinitely unless the Warrant or the Warrant Shares are
      registered pursuant to the Securities Act or an exemption from
      registration is available.  Holder understands that the Company
      has no present intention of registering the Warrant or the Warrant
      Shares.  Holder also understands that there is no assurance that
      any exemption from registration under the Securities Act will be available
      and that, even if available, such exemption may not allow the Holder to
      transfer all or any portion of the Warrant or the Warrant Shares under the
      circumstances, in the amounts or at the times the Holder might
      propose.  Holder has been advised of or is aware of the
      provisions of Rule 144 promulgated under the Securities Act as in effect
      from time to time, which permits limited resale of securities purchased in
      a private placement subject to the satisfaction of certain conditions,
      including, among other things: the availability of certain current public
      information about the Company, the resale occurring following the required
      holding period under Rule 144 and the number of securities being sold
      during any three month period not exceeding specified
      limitations.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              f.

            	
              Holder
      is an “accredited investor” within the meaning of Regulation D, Rule
      501(a), promulgated by the Securities and Exchange
      Commission.  Holder represents that by reason of its or its
      management’s business or financial experience, Holder has the capacity to
      protect its own interests in connection with the transactions contemplated
      in this Agreement. Further, Holder is aware of no publication of any
      advertisement in connection with the transactions contemplated in this
      Agreement.    Holder acknowledges that its investment
      in the Company is highly speculative and entails a substantial degree of
      risk and Holder is in a position to lose the entire amount of such
      investment.

            

    

     

    
      	
               
      

            	
              g.

            	
              Holder
      acknowledges that Holder has received any information requested by Holder
      for Holder to make an investment decision. Holder has had an opportunity
      to discuss the Company’s business, management and financial affairs with
      the Company and their respective representatives and has had the
      opportunity to review the Company’s operations and
      facilities.  Holder has also had the opportunity to ask
      questions of and receive answers from the Company and its management
      regarding the terms and conditions of this investment. Except as expressly
      set forth in this Agreement, Holder acknowledges and agrees that the
      Company have made no other representation or warranty regarding the
      operations, business, prospects or condition (financial or otherwise) of
      the Company or its affiliates.

            

    

     

    
      	
               
      

            	
              h.

            	
              Holder
      has had full opportunity to seek the advice of independent counsel
      respecting the transactions contemplated by this Agreement and any future
      exercise of the Warrant and the tax risks and implications
      thereof.  Holder maintains such Holder’s domicile (and is not a
      transient or temporary resident) at the address shown on the signature
      page of this Agreement.  There are no claims for brokerage
      commission, finders’ fees or similar compensation in connection with the
      transactions contemplated by this Agreement or related documents based on
      any arrangement or agreement binding upon
  Holder.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.           Non-Public
Information.  Holder acknowledges that Holder and its
representatives may receive information concerning the Company, some of which
may be deemed material non-public information, pursuant to the Confidentiality
Agreement (as defined on the signature page hereto).   Holder
acknowledges that with respect to Holder and its representatives: (a) such
persons and entities are aware (and, if applicable, that its representatives and
affiliates who are apprised of this matter have been advised) that the United
States securities laws prohibit any person who has material non-public
information about a company from purchasing or selling securities of such
company, or from communicating such information to any other person under
circumstances, which it is reasonably foreseeable that such person is likely to
purchase or sell such securities, and (b) the Company is a publicly traded
company listed on the OTC Bulletin Board and that some of the information
received by Holder and its representatives may be material non-public
information that would prohibit (i) such persons and entities from entering into
transactions with respect to the Company’s securities until such material
non-public information is fully disseminated in the public domain and (ii) from
communicating such information to any other person or entity under circumstances
in which it is reasonably foreseeable that such person is likely to purchase or
sell such securities.

     

    6.           Release.

     

    
      	
               
      

            	
              a.

            	
              In
      consideration of the foregoing, Holder hereby irrevocably and
      unconditionally REMISES, RELEASES AND FOREVER DISCHARGES the Company and
      its Related Persons from and against any and all Claims which the Holder
      can, shall or may have against the Company and its Related Persons (the
      “Company
      Released Claims”), except with respect to the issuance of the
      Warrant Shares upon exercise of, and pursuant to the terms of, the
      Warrant, as amended by this
Agreement.

            

    

     

    
      	
               
      

            	
              b.

            	
              Holder
      hereby covenants not to commence or prosecute against the Company or its
      Related Persons, or to cause or assist any other person or entity in
      commencing or prosecuting against the Company or its Related Persons, any
      action or proceeding arising out of or in any way connected with Company
      Released Claims, except with respect to the issuance of the Warrant Shares
      upon exercise of, and pursuant to the terms of, the Warrant, as amended by
      this Agreement.

            

    

     

    
      	
               
      

            	
              c.

            	
              Holder
      represents and warrants to the Company that it has not assigned or
      transferred, or purported to assign or transfer, voluntarily,
      involuntarily, or by operation of law, any Company Released Claims, or any
      part or portion thereof.

            

    

     

    
      	
               
      

            	
              d.

            	
              For
      purposes of this Agreement,

            

    

     

    
      	
               
      

            	
              i.

            	
              “Related
      Persons” means predecessors, successors, affiliates,
      successors-in-interest, executors, heirs, administrators, receivers,
      trustees, assigns, assignees and its and their insurers, officers,
      directors, members (direct and indirect), partners (direct and indirect),
      owners, past and present shareholders, past and present stockholders,
      direct or indirect subsidiaries, employees, agents, attorneys, lenders
      (and agents related thereto) and/or
  representatives.

            

    

     

    
      	
               
      

            	
              ii.

            	
              “Claims” means
      actions, suits, claims, demands, debts, dues, complaints, sums of money,
      accounts, reckonings, bonds, bills, specialities, covenants, contracts
      (whether oral or written, express or implied from any source), agreements,
      warranties, controversies, promises, judgments, extents, executions,
      variances, trespasses, liabilities or obligations of any kind whatsoever,
      in law or equity, and causes of action of every kind and nature, or
      otherwise (including, claims for damages, costs, expenses, and attorneys’,
      brokers’ and accountants’ fees and expenses) arising out of or related,
      directly or indirectly, to events, facts, conditions or circumstances
      existing or arising from the beginning of the world, through and until the
      day of date of this Agreement, whether arising in law, admiralty, or
      equity or by statute, by regulation, or otherwise, whether known or
      unknown, suspected or unsuspected, unanticipated as well as anticipated,
      groundless or otherwise, and that now exist or may hereafter accrue based
      on matters now unknown as well as known, including, without limitation,
      any and all claims and demands under, related to, arising from, or in any
      way connected with this Agreement, the Warrant or any of the Current
      Agreements.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7.           Remedies.  Holder
agrees to defend, indemnify and hold the Company and its Related Persons
harmless from any damages, loss, liabilities, diminution in value of property,
costs and expenses (including attorney fees and expenses) arising out of any
breach of this Agreement by Holder.  All representations, warranties,
covenants or other agreements contained in this Agreement shall survive the
execution and delivery of this Agreement and any exercise of the
Warrant.

     

    8.           Miscellaneous.

     

    
      	
               
      

            	
              a.

            	
              This
      Agreement shall amend and is incorporated into and made part of the
      Warrant. To the extent any term or provision of this Agreement may be
      deemed expressly inconsistent with any term or provision in the Warrant,
      the terms and provisions of this Agreement shall
      control.  Except as expressly amended by this Agreement, all of
      the terms, conditions and provisions of the Warrant are hereby ratified
      and continue unchanged and remain in full force and
  effect.

            

    

     

    
      	
               
      

            	
              b.

            	
              This
      Agreement shall be governed by, and interpreted in accordance with, the
      laws of the State of Delaware, without giving effect to any choice of law
      or conflicts of laws provisions or rule of any jurisdiction that would
      cause the substantive laws of any other jurisdiction to
      apply.  Holder hereby irrevocably and unconditionally consents
      to submit to the exclusive jurisdiction of the federal and state courts
      located in the city of Wilmington, Delaware for any actions, suits or
      proceedings arising out of or relating to this
      Agreement.  Holder hereby irrevocably and unconditionally waives
      any objection to the laying of venue of any action, suit or proceeding
      arising out of this Agreement, in the federal and state courts located in
      the city of Wilmington, Delaware and hereby further irrevocably and
      unconditionally waives and agrees not to plead or claim in any such court
      that any such action, suit or proceeding brought in any such court has
      been brought in an inconvenient
forum.

            

    

     

    
      	
               
      

            	
              c.

            	
              This
      Agreement may be executed in multiple counterparts, each of which shall be
      deemed an original but all of which together shall constitute one and the
      same instrument.  This Agreement, any and all agreements and
      instruments executed and delivered in accordance herewith, along with any
      amendments hereto or thereto, to the extent signed and delivered by means
      of E-mail, a facsimile machine or other means of electronic transmission,
      shall be treated in all manner and respects and for all purposes as an
      original signature, agreement or instrument and shall be considered to
      have the same binding legal effect as if it were the original signed
      version thereof delivered in
person.

            

    

     

    
      	
               
      

            	
              d.

            	
              Notices
      given hereunder shall be in writing and shall be deemed to have been duly
      given on the date established by the sender as having been delivered
      personally, upon confirmation of receipt if sent by facsimile, on the date
      delivered by a private courier as established by the sender by evidence
      obtained from the courier, on the third day after the date mailed, if
      mailed by certified or registered mail, return receipt requested, postage
      prepaid, to the party being notified at its address or facsimile number
      set forth on the signature page hereto or such other address as the
      addressee may subsequently notify the other party of in
      writing.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              e.

            	
              This
      Agreement may be amended, and any provisions hereof may be waived, only by
      a writing signed by Holder and the Company.  Holder may not
      assign this Agreement or any of its rights hereunder without the written
      consent of the Company.  This Agreement shall be binding upon
      and inure to the benefit of Holder and the Company and their respective
      successors and assigns.  If any portion or provision of this
      Agreement shall to any extent be declared illegal or unenforceable by a
      court of competent jurisdiction, then the remainder of this Agreement, or
      the application of such portion or provision in circumstances other than
      those as to which it is so declared illegal or unenforceable, shall not be
      affected thereby, and each portion and provision of this Agreement shall
      be valid and enforceable to the fullest extent permitted by applicable
      law.  No failure or delay by the Company in exercising any
      right, power or privilege hereunder will operate as a waiver thereof, nor
      will any single or partial exercise thereof preclude any other or further
      exercise thereof or the exercise of any other right, power or privilege
      hereunder.  This Agreement embodies the entire agreement and
      understanding of the Company and Holder with respect to the subject matter
      hereof and supersedes all prior discussions, negotiations, agreements and
      understandings among Holder and the Company with respect to the subject
      matter hereof.  Holder shall not issue any press release, make
      any other public statement or otherwise disclose to any person the
      existence of this Agreement or any of the terms and conditions hereof,
      without the prior written consent of the Company, except to the extent
      legally required to make such disclosure upon the advice of outside legal
      counsel.

            

    

     

    [Signature
Page Follows]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
Parties hereto have caused this Agreement to be executed and delivered as of
July 15, 2009 by persons thereunto duly authorized.

     

     

    
      
        	COMPANY:	 	HOLDER:	 
	WorldGate
      Communications, Inc.	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	
                 

              	 	By:	
                 

              	 
	Name:	
                Christopher
      V. Vitale

              	 	 	
                Antonio
      Tomasello

              	 
	Title:	
                General
      Counsel and Secretary

              	 	 	
                 

              	 
	 	 	 	 	 	 
	Address:	3190
      Tremont Avenue	 	Address:	___________________	 
	 	Trevose, Pennsylvania 19053	 	 	___________________	 
	Fax:	215-354-5199	 	Fax:	___________________	 
	 	 	 	 	 	 
	 	 	 	Social
      Security Number/Federal Tax ID number:	 
	 	 	 	 	___________________	 

      

    

    
 

    
      	
               

              Provisions
      Referenced in Agreement:

               

            
	
               

              “Warrant
      Shares” means 2,564,102 shares of Common
      Stock.

               

            
	
               

              “New Exercise
      Price”
      means (a)
      $0.25 per share of
      Common Stock if the
      Warrant is exercised in full prior to September 15, 2009, (b) $0.31 per share of Common
      Stock if the Warrant
      is exercised in full on or after September 15, 2009 but prior to November
      15, 2009, or (c) $0.39 per share of Common
      Stock if the Warrant
      is exercised in full on or after November 15, 2009 or is exercised in part
      at any time.

               

            
	
               

              “Confidentiality
      Agreement” means the Confidentiality Agreement, dated July 15,
      2009, between the Company and Holder.

               

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Exhibit
A

    

    Warrant
No. 2008-01THORIUM
POWER, LTD

    

    SECOND
AMENDED AND RESTATED 2006 STOCK PLAN

    

    NOTICE OF
GRANT

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	Name:  	
                                    Seth
      Grae

                                  	 	
                                    Address:

                                  	
                                    1249
      Beverly Road

                                  	 
	 	 
      	 	 
      	
                                    McLean,
      VA 22101

                                  	 

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    You have
been granted the number of shares (the “Restricted
Shares”) of restricted common stock of the Corporation (“Restricted
Stock”) specified below subject to the terms and conditions of the
attached Restricted Stock Grant Agreement and the Company’s the Second Amended
and Restated 2006 Stock Plan.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        	
                                                                Date
      of Grant:

                                                              	 	
                                                                July
      14, 2009

                                                              	 
	 
      	 	 	 
	
                                                                Vesting
      Commencement Date:

                                                              	 	
                                                                July
      14, 2009

                                                              	 
	 
      	 	 	 
	
                                                                Purchase
      Price per share of

                                                              	 	 	 
	
                                                                Restricted
      Stock:

                                                              	 	$0	 
	 
      	 	 	 	 
	
                                                                Total
      Number of shares of

                                                              	 	 	 	 
	
                                                                Restricted
      Stock Granted:

                                                              	 	 1,009,868	 
	 
      	 	 	 	 
	
                                                                Total
      Purchase Price:

                                                              	 	$0	 

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    Vesting
Schedule:

    

    The
shares of Restricted Stock shall vest and no longer be subject to forfeiture in
accordance with the following schedule:

    

    The
Restricted Stock shall vest with respect to 1/3 of the total number of shares on
the first anniversary of the Vesting Commencement Date, and shall thereafter
vest with respect to 1/3 the total number of shares on each of the second and
third anniversaries of the Vesting Commencement Date.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    THORIUM
POWER, LTD

    

    SECOND
AMENDED AND RESTATED 2006 STOCK PLAN

    

    RESTRICTED STOCK GRANT
AGREEMENT

     

    This RESTRICTED STOCK GRANT AGREEMENT
(“Agreement”),
dated as of the date specified in the Notice of Grant (which is expressly
incorporated herein and made a part hereof, the “Notice of
Grant”), is made by and between THORIUM POWER, LTD., a Nevada corporation
(the “Corporation”),
and SETH GRAE (the “Grantee,”
which term as used herein shall be deemed to include any successor to the
Grantee by will or by the laws of descent and distribution, unless the context
shall otherwise require).

     

    BACKGROUND

     

    Pursuant to the Corporation’s Second
Amended and Restated 2006 Stock Plan (the “Plan”),
the Corporation, acting through the Committee of the Board of Directors (if a
committee has been formed to administer the Plan) or its entire Board of
Directors (if no such committee has been formed) responsible for administering
the Plan (in either case, referred to herein as the “Committee”), approved the
issuance to the Grantee, effective as of the date set forth above, of an award
of the number of shares of Restricted Stock as is set forth in the attached
Notice of Grant (which is expressly incorporated herein and made a part hereof,
the “Notice of Grant”), upon the terms and conditions hereinafter set
forth.

     

    NOW, THEREFORE, in
consideration of the mutual premises and undertakings hereinafter set forth, the
parties hereto agree as follows:

     

    1.           Grant of
Restricted Stock.  The Corporation hereby grants to Grantee,
and Grantee hereby accepts the number of shares of Restricted Stock set forth in
the Notice of Grant.

     

    2.           Stockholder
Rights.  Until such time as all or any part of the Restricted
Stock is forfeited to the Corporation under this Agreement, if ever, Grantee (or
any successor in interest) shall have the rights of a stockholder (including
voting rights) with respect to the Restricted Stock that has been issued,
including the Restricted Stock that has been issued, but not yet vested,
subject, however, to the transfer restrictions of Section 3.

     

    3.           Vesting
of Restricted Stock.

     

    (a)           The
shares of Restricted Stock shall be restricted and subject to forfeiture
pursuant to Section 4 until vested pursuant to this Section 3 or Section
6(b).  The shares of Restricted Stock shall vest, and no longer be
subject to forfeiture, (such shares of Restricted Stock becoming “Vested
Shares”) in accordance with the vesting schedule set forth in the Notice
of Grant.  All shares of Restricted Stock which have not become Vested
Shares are hereinafter sometimes referred to as “Nonvested
Shares.”

     

    (b)           The
Grantee acknowledges that the vesting of the foregoing shares of Restricted
Stock may create significant income tax liability to the Grantee and has
reviewed and understands Section 8 of this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)           Nonvested
Shares may not be sold, transferred, assigned, pledged, or otherwise disposed
of, directly or indirectly.

     

    4.           Forfeiture
of Shares.  Except as provided for accelerated vesting in the
Notice of Grant, at such time as Grantee employment or other relationship with
the Corporation ceases for any reason, including death or disability, then, in
such event, any Nonvested Shares shall be automatically forfeited to the
Corporation unless the Corporation otherwise notifies the Grantee. Upon notice
from the Corporation of such forfeiture, the Grantee shall immediately return to
the Corporation any stock certificate that evidences Nonvested Shares and shall
execute any and all such documents and instruments to allow the Corporation to
reacquire the forfeited shares.

     

    5.           Legend.  All
stock certificates evidencing the Nonvested Shares shall be imprinted with a
legend substantially as follows:

     

    “THE
SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS
AGAINST TRANSFER AND FORFEITURE, AS SET FORTH IN A RESTRICTED STOCK GRANT
AGREEMENT DATED JULY 14, 2009. TRANSFER OF THESE SHARES MAY BE MADE ONLY IN
COMPLIANCE WITH THE PROVISIONS OF SAID AGREEMENT, A COPY OF WHICH IS ON FILE AT
THE PRINCIPAL OFFICE OF THE CORPORATION.”

    

    6.           Recapitalizations,
Exchanges, Mergers, Etc.

     

    (a)           The
provisions of this Agreement shall apply to the full extent set forth herein
with respect to any and all shares of capital stock of the Corporation or
successor of the Corporation which may be issued in respect of, in exchange for,
or in substitution for the Restricted Stock by reason of any stock dividend,
split, reverse split, combination, recapitalization, reclassification, merger,
consolidation or otherwise which does not terminate this
Agreement.  Except as otherwise provided herein, this Agreement is not
intended to confer upon any other person except the parties hereto any rights or
remedies hereunder.  In addition, without limiting the accelerated
vesting provision contained in the Notice of Grant, in the event of a business
combination, sale of all or substantially all of the Corporation’s assets,
recapitalization or similar event, the Board of Directors of the Corporation
shall have the right to make an equitable adjustment to the terms of this
Agreement and to provide for substitute property (including cash or other
securities) in lieu of, or in exchange for, the Restricted Stock granted
hereunder.

     

    (b)           Without
limiting the accelerated vesting provision contained in the Notice of Grant, any
adjustments made under this Section 6 will be made by the Board of Directors,
whose determination as to what adjustments, if any, will be made and the extent
thereof will be final, binding and conclusive.  No fractional shares
will be issued on account of any such adjustments.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    7.           No
Employment Contract Created.  The issuance of the shares of
Restricted Stock shall not be construed as granting to Grantee any right with
respect to continuance of employment or any other business relationship by the
Corporation or any of its Subsidiaries.  The right of the Corporation
or any of its Subsidiaries to terminate at will Grantee's employment or
terminate a business relationship with the Grantee at any time (whether by
dismissal, discharge or otherwise), with or without cause, is specifically
reserved, subject to any other written employment or other agreement to which
the Corporation and Grantee may be a party.

     

    8.           Section
83(b) Election.  Grantee understands that under Section 83 of
the Internal Revenue Code of 1986, as amended (the “Code”),
the excess of the fair market value of the shares of Restricted Stock on the
date any forfeiture restrictions applicable to such shares of Restricted Stock
lapse over the purchase price paid for such shares of Restricted Stock will be
reportable as ordinary income at that time.  Grantee understands,
however, that Grantee may elect to be taxed at the time the shares of Restricted
Stock are acquired hereunder, rather than when and as such shares of Restricted
Stock cease to be subject to such forfeiture restrictions, by filing an election
under Section 83(b) of the Code with the Internal Revenue Service within thirty
(30) days after the date of this Agreement. GRANTEE ACKNOWLEDGES THAT IT IS
GRANTEE'S SOLE RESPONSIBILITY, AND NOT THE CORPORATION'S, TO FILE A TIMELY
ELECTION UNDER SECTION 83(b), EVEN IF GRANTEE REQUESTS THE CORPORATION OR ITS
REPRESENTATIVES TO MAKE THIS FILING ON GRANTEE’S BEHALF.

     

    9.           Tax
Witholding.  The Corporation shall be entitled to withhold from
Grantee’s compensation any amounts necessary to satisfy applicable tax
withholding with respect to the grant and vesting of the shares of Restricted
Stock.

     

    10.         Interpretation.  The
shares of Restricted Stock are being issued pursuant to the terms of the Plan,
and shall in all respects be interpreted in accordance therewith.

     

    11.         Notices.  All notices or
other communications which are required or permitted hereunder shall be in
writing and sufficient if (i) personally delivered or sent by telecopy, (ii)
sent by nationally-recognized overnight courier or (iii) sent by registered or
certified mail, postage prepaid, return receipt requested, addressed as
follows:

     

    if to the Grantee, to the address (or
telecopy number) set forth on the Notice of Grant; and

    

    if to the Corporation, to its principal
executive office as specified in any report filed by the Corporation with the
Securities and Exchange Commission or to such address as the Corporation may
have specified to the Grantee in writing, Attention: Corporate
Secretary;

    

    or to
such other address as the party to whom notice is to be given may have furnished
to the other party in writing in accordance herewith.  Any such
communication shall be deemed to have been given (i) when delivered, if
personally delivered, or when telecopied, if telecopied, (ii) on the first
Business Day (as hereinafter defined) after dispatch, if sent by
nationally-recognized overnight courier and (iii) on the third Business Day
following the date on which the piece of mail containing such communication is
posted, if sent by mail.  As used herein, “Business
Day” means a day that is not a Saturday, Sunday or a day on which banking
institutions in the city to which the notice or communication is to be sent are
not required to be open.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    12.           Specific
Performance.  Grantee expressly agrees that the Corporation
will be irreparably damaged if the provisions of this Agreement are not
specifically enforced.  Upon a breach or threatened breach of the
terms, covenants and/or conditions of this Agreement by the Grantee, the
Corporation shall, in addition to all other remedies, be entitled to a temporary
or permanent injunction, without showing any actual damage, and/or decree for
specific performance, in accordance with the provisions hereof and
thereof.

     

    13.           No
Waiver.  No waiver of any
breach or condition of this Agreement shall be deemed to be a waiver of any
other or subsequent breach or condition, whether of like or different
nature.

     

    14.           Grantee
Undertaking.  The Grantee
hereby agrees to take whatever additional actions and execute whatever
additional documents the Corporation may in its reasonable judgment deem
necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on the Grantee pursuant to the express
provisions of this Agreement.

     

    15.           Modification
of Rights.  The rights of the
Grantee are subject to modification and termination in certain events as
provided in the Plan and this Agreement.

     

    16.           Governing
Law.  This Agreement
shall be governed by, and construed in accordance with, the laws of the State of
Nevada applicable to contracts made and to be wholly performed therein, without
giving effect to its conflicts of laws principles.

     

    17.           Counterparts;
Facsimile Execution.  This Agreement
may be executed in one or more counterparts, each of which shall be deemed to be
an original, but all of which together shall constitute one and the same
instrument.  Facsimile execution and delivery of this Agreement is
legal, valid and binding execution and delivery for all purposes.

     

    18.           Entire
Agreement.  This Agreement
(including the Notice of Grant) and the Plan constitute the entire agreement
between the parties with respect to the subject matter hereof, and supersede all
previously written or oral negotiations, commitments, representations and
agreements with respect thereto.

     

    19.           Severability.  In the event one
or more of the provisions of this Agreement should, for any reason, be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provisions of this Agreement, and
this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein.

     

    20.           WAIVER OF
JURY TRIAL.  THE GRANTEE
HEREBY EXPRESSLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM
THEREIN.

    

    [signature
page follows]

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have executed this Restricted Share Grant Agreement as of the
date first written above.

    

    
      
        
          
            
              
                
                  	
                          THORIUM POWER, LTD.

                        
	 
      	 
      
	
                          By:

                        	
                          /s/
      Seth Grae

                        
	
                          Name:
      Seth Grae

                        
	
                          Title:
      President and Chief Executive Officer

                        
	 
      	 
      
	
                          GRANTEE:

                        
	 
      	 
      
	
                          /s/ Seth Grae

                        
	
                          Name:
      Seth
Grae

                        

                

              

            

          

        

      

    

    
      
         

      

      
        5

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