Document:

Unassociated Document

     

    
      Form
of Warrant

      

      

      

      

      THE
ISSUANCE OF THIS WARRANT AND THE WARRANT SHARES ISSUABLE UPON EXERCISE OF THIS
WARRANT HAVE BEEN REGISTERED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF
1933, AS AMENDED (REGISTRATION NO. 333-162671).

      

      LIGHTBRIDGE
CORPORATION

      

      Warrant To
Purchase Common
Shares

      

      Warrant
No.: ____________________

      Number of
Common Shares: ____________________

      Date of
Issuance: July 28, 2010 (“Issuance Date”)

      

      Lightbridge
Corporation, a Nevada corporation (the “Company”), hereby certifies
that, for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, [INVESTOR NAME], the registered holder hereof or its
permitted assigns (the “Holder”), is entitled,
subject to the terms set forth below, to purchase from the Company, at the
Exercise Price (as defined below) then in effect, upon surrender of this Warrant
to Purchase Common Shares (including any Warrants to Purchase Common Shares
issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or
times on or after the six (6) month anniversary of the Issuance Date, but not
after 5:00 p.m., New York time, on the Expiration Date (as defined below),
[_____ (_____)] (subject to adjustment as provided herein) fully paid,
nonassessable Common Shares (as defined below) (the “Warrant Shares”). Except as
otherwise defined herein, capitalized terms in this Warrant shall have the
meanings set forth in Section
16.  This Warrant is the Warrant to Purchase Common Shares
issued pursuant to (i) Section 1 of that certain
Subscription Agreement dated as of July 22, 2010 (the “Subscription Date”), by and
between the Company and the Holder (the “Subscription Agreement” and
together with the other subscription agreements entered into by the Company on
the Subscription Date, the “Subscription Agreements”) and
(ii) the Company’s Registration Statement on Form S-3 (File number 333-162671)
(as amended and supplemented through November 19, 2009, the “Registration
Statement”).

      

      1.   EXERCISE OF
WARRANT.

      

      (a)   Mechanics of
Exercise. Subject to the terms and conditions hereof, this Warrant may be
exercised by the Holder on any day on or after the Issuance Date, in whole or in
part, by delivery of a written notice, in the form attached hereto as Exhibit A
(the “Exercise Notice”),
of the Holder’s election to exercise this Warrant.  Within two (2)
days following the Exercise Notice, the Holder shall make payment to the Company
of an amount equal to the applicable Exercise Price multiplied by the number of
Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”) in
cash or by wire transfer of immediately available funds, or provided the
conditions for cashless exercise set forth in Section 1(e) are
satisfied, by notifying the Company that this Warrant is being exercised
pursuant to a Cashless Exercise (as defined in Section
1(e)).   Execution and delivery of the Exercise Notice
with respect to less than all of the Warrant Shares shall have the same effect
as cancellation of the original Warrant and issuance of a new Warrant evidencing
the right to purchase the remaining number of Warrant Shares.  On or
before the first (1st) Business Day following the date on which the Company has
received the Exercise Notice, the Company shall transmit by facsimile an
acknowledgment of confirmation of receipt of the Exercise Notice to the Holder
and the Company’s transfer agent (the “Transfer
Agent”).  On or before the third (3rd) Business Day following
the date on which the Company has received the Exercise Notice (the “Share Delivery Date”), the
Company shall  (X) provided that the Transfer Agent is
participating in The Depository Trust Company (“DTC”) Fast Automated
Securities Transfer Program (the “FAST Program”), upon the
request of the Holder, credit such aggregate number of Common Shares 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 (Y), if the Transfer Agent is not participating in the
FAST Program, issue and dispatch by overnight courier to the address as
specified in the Exercise Notice, a certificate, registered in the Company’s
share register in the name of the Holder or its designee, for the number of
Common Shares to which the Holder is entitled pursuant to such
exercise.  The Warrant Shares so purchased shall be deemed to be
issued to the Holder or the Holder’s designee, as the record owner of such
Warrant Shares, as of the close of business on the date of
exercise.  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 three (3)
Business Days after any exercise and at its own expense, issue a new Warrant (in
accordance with Section 7(d))
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. No fractional
Common Shares are to be issued upon the exercise of this Warrant, but rather the
Company shall pay to Holder cash equal to the product of such fraction
multiplied by the Closing Sale Price of one Warrant Share on the Share Delivery
Date. The Company shall pay any and all transfer taxes and transfer agent fees
which may be payable with respect to the issuance and delivery of Warrant Shares
to the Holder upon exercise of this Warrant.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)   Exercise Price. For
purposes of this Warrant, “Exercise Price” means $[·] per Warrant Share,
subject to adjustment as provided herein.

      

      (c)   Disputes. 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 promptly issue to the
Holder the number of Warrant Shares that are not disputed.

      

      [(d)   Limitations On
Exercise.  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
Common Shares outstanding immediately after giving effect to such
exercise.  For purposes of the foregoing sentence, the aggregate
number of Common Shares beneficially owned by such Person and its affiliates
shall include the number of Common Shares issuable upon exercise of this Warrant
with respect to which the determination of such sentence is being made, but
shall exclude Common Shares which would be issuable upon (i) exercise of the
remaining, unexercised portion of this Warrant beneficially owned by such Person
and its affiliates and (ii) 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 shares 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 Securities Exchange
Act of 1934, as amended (the “Exchange Act”). For purposes
of this Warrant, in determining the number of outstanding Common Shares, the
Holder may rely on the number of outstanding Common Shares as reflected in the
most recent of (1) the Company’s most recent Form 10-K,  Form 10-Q 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 Common Shares
outstanding. For any reason at any time, upon the written or oral request of the
Holder, the Company shall within two (2) Business Days confirm to the Holder the
number of Common Shares then outstanding. In any case, the number of outstanding
Common Shares shall be determined after giving effect to the conversion or
exercise of securities of the Company, including this Warrant, by the Holder and
its affiliates since the date as of which such number of outstanding Common
Shares was reported. By written notice to the Company, the Holder may from time
to time increase or decrease the Maximum Percentage to any other percentage not
in excess of 9.99% specified in such notice; provided that (i) any such increase
will not be effective until the sixty-first (61st) day after such notice is
delivered to the Company, and (ii) any such increase or decrease will apply only
to the Holder. The provisions of this paragraph shall be construed, corrected
and implemented in a manner so as to effectuate the intended beneficial
ownership limitation herein contained. The limitations contained in this
paragraph shall apply to any successor Holder of this
Warrant.]  [Note: Certain Warrants issued by the Company pursuant to
the Subscription Agreements will not contain this provision.]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (e)   Limited Cashless
Exercise. If the Registration Statement (or any subsequent registration
statement applicable to the Warrant Shares) permitting the registered issuance
of the Warrant Shares is not then effective or the prospectus forming a part
thereof is not then available, then the Holder shall be entitled to utilize
cashless exercise, in which event the Company shall issue to the Holder the
number of Warrant Shares determined as follows (a “Cashless
Exercise”):

      

      X = Y
[(A-B)/A]

      

      where:

      

      X = the
number of Warrant Shares to be issued to the Holder.

      Y = the
number of Warrant Shares with respect to which this Warrant is being
exercised.

      A = the
VWAP for the five (5) Trading Days immediately prior to (but not including) the
date of delivery of the Exercise Notice.

      B = the
Exercise Price.

      

      Upon
receipt of an Exercise Notice to which this Section 1(e) is applicable, the
Company shall notify the Holder within one (1) Trading Day of such applicability
and the calculation of the Warrant Shares issuable upon the noticed exercise of
the Warrant utilizing cashless exercise, and confirm the Holder’s desire to
complete the exercise of the Warrant pursuant to this Section 1(e).

      

      For
purposes of Rule 144 promulgated under the Securities Act of 1933, as amended,
it is intended, understood and acknowledged that the Warrant Shares issued in a
cashless exercise transaction 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 date this Warrant was originally issued.

      

      (f)   Company’s Failure to Timely
Deliver Securities. If the Company shall fail for any reason or for no
reason to issue to the Holder within three (3) Business Days after the Share
Delivery Date in compliance with the terms of this Section 1, a
certificate for the number of Common Shares to which the Holder is entitled and
register such Common Shares on the Company’s share register or to credit the
Holder’s balance account with DTC for such number of Common Shares to which the
Holder is entitled upon the Holder’s exercise of this Warrant, and if on or
after such Trading Day the Holder, or any third party on behalf of the Holder or
for the Holder’s account, purchases (in an open market transaction or otherwise)
Common Shares to deliver in satisfaction of a sale by the Holder of Common
Shares issuable upon such exercise that the Holder anticipated receiving from
the Company (a “Buy-In”), then the Company
shall, within three (3) Business Days after the Holder’s request and in the
Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the
Holder’s total purchase price (including brokerage commissions, if any) for the
Common Shares so purchased (the “Buy-In Price”), at which point
the Company’s obligation to deliver such certificate (and to issue such Warrant
Shares) shall terminate, or (ii) promptly honor its obligation to deliver to the
Holder a certificate or certificates representing such Warrant Shares and pay
cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price
over the product of (A) such number of Common Shares, times (B) the Closing Sale
Price on the Share Delivery Date.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.   ADJUSTMENT OF EXERCISE PRICE
AND NUMBER OF WARRANT SHARES. The Exercise Price and the number of
Warrant Shares shall be adjusted from time to time as follows:

      

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

      

      

      (b)   Other Events. If any
event occurs of the type contemplated by the provisions of this Section 2 but not
expressly provided for by such provisions (including, without limitation, the
granting of share appreciation rights or phantom share rights to all
shareholders), then the Company’s Board of Directors will make an appropriate
adjustment in the Exercise Price and the number of Warrant Shares so as to
protect the rights of the Holder; provided that no such adjustment pursuant to
this Section
2(b) will increase the Exercise Price or decrease the number of Warrant
Shares as otherwise determined pursuant to this Section
2.

      

      (c)   Calculations. All
calculations made under this Section 2 shall be
made by rounding to the nearest cent or the nearest 1/100th of a
Common Share, as applicable.  

      

      3.   RIGHTS UPON DISTRIBUTION OF
ASSETS.

      

      (a)   If
at any time or from time to time the holders of Common Shares of the Company (or
any other securities at the time receivable upon the exercise of this Warrant)
shall have received or become entitled to receive, without payment
therefor:

      

      (i)   Common
Shares or other securities which are at any time directly or indirectly
convertible into or exchangeable for Common Shares, or any rights or options to
subscribe for, purchase or otherwise acquire any of the foregoing by way of
dividend or other distribution (other than an issuance due to a subdivision
covered in Section
2(a) above);

      

      (ii)   any
cash paid or payable, including any declared and paid cash dividends;
or

      

      (iii)   Common
Shares or additional shares or other securities or property (including cash) by
way of spinoff, split-up, reclassification, combination of shares or similar
corporate rearrangement (other than Common Shares pursuant to Section 2(a)
above),

      

      then and
in each such case, the Exercise Price in effect immediately prior to such
distribution will be reduced by the value of the distribution per Common Share
..  The number of Warrant Shares shall be increased to a number of
shares equal to the number of Common Shares obtainable upon exercise in full of
this Warrant immediately prior to the close of business on the record date fixed
for the determination (without regard to any restrictions or limitations on
exercise of this Warrant) of holders of Common Shares entitled to receive the
distribution multiplied by a fraction equal to the Exercise Price in effect
immediately prior to the Exercise Price adjustment set forth in the immediately
preceding sentence over the Exercise Price in effect immediately following such
adjustment. The value of a distribution shall be determined as
follows:  (i) in the case of a cash distribution, the dollar amount of
cash distributed per Common Share; (ii) in the case of a distribution (other
than cash) the value of which can be determined using the Black and Scholes
Option Pricing Model (including, without limitation, options, warrants and
similar securities), the Black and Scholes Value of such distribution per Common
Share; and (iii) in the case of a distribution (other than cash) that cannot be
determined using the Black and Scholes Option Pricing Model, the value of such
distribution per Common Share determined by a valuation agent reasonably
acceptable to the Company and the Holder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (b)   Upon
the occurrence of each adjustment pursuant to this Section 3, the Company at its
expense will, at the written request of the Holder, promptly compute such
adjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment, including a statement of the adjusted
Exercise Price and number or type of Warrant Shares describing the transactions
giving rise to such adjustments and showing in detail the facts upon which
such adjustment is based, including the expiration date of any applicable
options, warrants or rights. Upon written request, the Company will promptly
deliver a copy of each such certificate to the Holder and to the Transfer
Agent.  All calculations made under this Section 3 shall be
made by rounding to the nearest cent or the nearest 1/100th of any
security, as applicable.

      

      4. FUNDAMENTAL
TRANSACTIONS.  If, at any time while this Warrant is
outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into
another Person, (ii) the Company, directly or indirectly, effects any sale,
lease, license, assignment, transfer, conveyance or other disposition of all or
substantially all of its assets in one or a series of related transactions,
(iii) any, direct or indirect, purchase offer, tender offer or exchange offer
(whether by the Company or another Person) is completed pursuant to which
holders of Common Stock are permitted to sell, tender or exchange their shares
for other securities, cash or property and has been accepted by the holders of
50% or more of the outstanding Common Stock, (iv) the Company, directly or
indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property, (v) the Company, directly or
indirectly, in one or more related transactions consummates a stock or share
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 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 or share
purchase agreement or other business combination) (each a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the
right to receive, for each Warrant Share that would have been issuable upon such
exercise immediately prior to the occurrence of such Fundamental Transaction, at
the option of the Holder (without regard to any limitation in Section 1(d) on
the exercise of this Warrant), the number of shares of Common Stock of the
successor or acquiring corporation or of the Company, if it is the surviving
corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this Warrant is exercisable immediately
prior to such Fundamental Transaction (without regard to any limitation in
Section 1(d) on the exercise of this Warrant).  For purposes of any
such exercise, the determination of the Exercise Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common Stock in such
Fundamental Transaction, and the Company shall apportion the Exercise Price
among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration.  If
holders of Common Stock are given any choice as to the securities, cash or
property to be received in a Fundamental Transaction, then the Holder shall be
given the same choice as to the Alternate Consideration it receives upon any
exercise of this Warrant following such Fundamental
Transaction.  Notwithstanding anything to the contrary, in the event
of a Fundamental Transaction other than one in which a Successor Entity (as
defined below) that is a publicly traded corporation whose stock is quoted or
listed for trading on an Eligible Market assumes this Warrant such that the
Warrant shall be exercisable for the publicly traded Common Stock of such
Successor Entity, the Company or any Successor Entity  shall, at the
Holder’s option, exercisable at any time concurrently with, or within 30 days
after, the consummation of the Fundamental Transaction, purchase this Warrant
from the Holder by paying to the Holder an amount of cash equal to the Black
Scholes Value of the remaining unexercised portion of this Warrant on the date
of the consummation of such Fundamental Transaction.  As used herein
(w) “Black Scholes
Value” means the value of this Warrant based on the Black and Scholes
Option Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”) determined as of
the day of consummation of the applicable Fundamental Transaction for pricing
purposes and reflecting (A) a risk-free interest rate corresponding to the U.S.
Treasury rate for a period equal to the time between the date of the public
announcement of the applicable Fundamental Transaction and the Expiration Date,
(B) an expected volatility equal to the greater of 100% and the 100 day
volatility obtained from the HVT function on Bloomberg as of the Trading Day
immediately following the public announcement of the applicable Fundamental
Transaction, (C) the underlying price per share used in such calculation shall
be the sum of the price per share being offered in cash, if any, plus the value
of any non-cash consideration, if any, being offered in such Fundamental
Transaction and (D) a remaining option time equal to the time between the date
of the public announcement of the applicable Fundamental Transaction and the
Expiration Date, (x) “Successor Entity” means the Person
(as defined in the Purchase Agreement) (or, if so elected by the Holder, the
Parent Entity (as defined below)) formed
by, resulting from or surviving any Fundamental Transaction or the Person (or,
if so elected by the Holder, the Parent Entity) with which such Fundamental
Transaction shall have been entered into, (y) “Eligible Market” means the NYSE Amex, The NASDAQ
Capital Market, The NASDAQ Global Market, The NASDAQ Global Select Market, the
New York Stock Exchange or the OTC Bulletin Board (or any successors to any of
the foregoing) and (z) “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.  The terms of any agreement
pursuant to which a Fundamental Transaction is effected shall include terms
requiring any such successor or surviving entity to comply with the provisions
of this Section 4 and insuring that this Warrant (or any such replacement
security) will be similarly adjusted upon any subsequent transaction analogous
to a Fundamental Transaction.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      5. NONCIRCUMVENTION. The
Company hereby covenants and agrees that the Company will not, by amendment of
its Certificate of Incorporation 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 comply with all the provisions of this Warrant and take all
actions consistent with effectuating the purposes of this Warrant. Without
limiting the generality of the foregoing, the Company (i) shall not
increase the par value of any Common Shares receivable upon the exercise of this
Warrant above the Exercise Price then in effect, (ii) shall take all such
actions as may be necessary or appropriate in order that the Company may validly
and legally issue fully paid and nonassessable Common Shares upon the exercise
of this Warrant, and (iii) shall, so long as this Warrant is outstanding,
take all action necessary to reserve and keep available out of its authorized
and unissued Common Shares, solely for the purpose of effecting the exercise of
this Warrant, 100% of the number of Common Shares issuable upon exercise of the
Warrants then outstanding (without regard to any limitations on
exercise).

      

      6.   WARRANT HOLDER NOT DEEMED A
SHAREHOLDER. Except
as otherwise specifically provided herein, the Holder, solely in such Person’s
capacity as a holder of this Warrant, shall not be entitled to vote or receive
dividends or be deemed the holder of share capital of the Company for any
purpose, nor shall anything contained in this Warrant be construed to confer
upon the Holder, solely in such Person’s capacity as the Holder of this Warrant,
any of the rights of a shareholder of the Company or any right to vote, give or
withhold consent to any corporate action (whether any reorganization, issue of
shares, reclassification of shares, consolidation, merger, conveyance or
otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares
which such Person is then entitled to receive upon the due exercise of this
Warrant. In addition, nothing contained in this Warrant shall be construed as
imposing any liabilities on the Holder to purchase any securities (upon exercise
of this Warrant or otherwise) or as a shareholder of the Company, whether such
liabilities are asserted by the Company or by creditors of the
Company.  Notwithstanding this Section 6, the
Company shall provide the Holder with copies of the same notices and other
information given to the shareholders of the Company generally,
contemporaneously with the giving thereof to the shareholders, provided that any
such notice or information published via international wire or furnished to or
filed with the U.S. Securities and Exchange Commission shall satisfy this
requirement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      7.   REISSUANCE OF WARRANTS; NO
FRACTIONAL SHARES.

      

      (a)   Transfer of Warrant.
If this Warrant is to be transferred, the Holder shall surrender this Warrant to
the Company and deliver the completed and executed Assignment Form, in the form
attached hereto as Exhibit B, whereupon
the Company will forthwith issue and deliver upon the order of the Holder a new
Warrant (in accordance with Section 7(d)),
registered as the Holder may request, representing the right to purchase the
number of Warrant Shares being transferred by the Holder and, if less then the
total number of Warrant Shares then underlying this Warrant is being
transferred, a new Warrant (in accordance with Section 7(d)) to the
Holder representing the right to purchase the number of Warrant Shares not being
transferred.

      

      (b)   Lost, Stolen or Mutilated
Warrant. Upon receipt by the Company of evidence reasonably satisfactory
to the Company of the loss, theft, destruction or mutilation of this Warrant,
and, in the case of loss, theft or destruction, of any indemnification
undertaking by the Holder to the Company in customary form and, in the case of
mutilation, upon surrender and cancellation of this Warrant, the Company shall
execute and deliver to the Holder a new Warrant (in accordance with Section 7(d))
representing the right to purchase the Warrant Shares then underlying this
Warrant.

      

      (c)   Exchangeable for Multiple
Warrants. This Warrant is exchangeable, upon the surrender hereof by the
Holder at the principal office of the Company, for a new Warrant or Warrants (in
accordance with Section 7(d))
representing in the aggregate the right to purchase the number of Warrant Shares
then underlying this Warrant, and each such new Warrant will represent the right
to purchase such portion of such Warrant Shares as is designated by the Holder
at the time of such surrender; provided, however, that no
Warrants for fractional Common Shares shall be given. 

      

      (d)   Issuance of New
Warrants. Whenever the Company is required to issue a new Warrant
pursuant to the terms of this Warrant, such new Warrant (i) shall be of like
tenor with this Warrant, (ii) shall represent, as indicated on the face of such
new Warrant, the right to purchase the Warrant Shares then underlying this
Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the
Warrant Shares designated by the Holder which, when added to the number of
Common Shares underlying the other new Warrants issued in connection with such
issuance, does not exceed the number of Warrant Shares then underlying this
Warrant), (iii) shall have an issuance date, as indicated on the face of such
new Warrant which is the same as the Issuance Date, and (iv) shall have the same
rights and conditions as this Warrant.

      

      (e)   No Fractional Shares.
No fractional shares of Warrant Shares will be issued in connection with any
exercise of this Warrant. In lieu of any fractional shares which would,
otherwise be issuable, the Company shall pay to Holder cash equal to the product
of such fraction multiplied by the Closing Sale Price of one Warrant Share on
the Share Delivery Date.

      

      8.   NOTICES. All notices
required or permitted hereunder shall be in writing and shall be deemed
effectively given: (a) upon personal delivery to the party to be notified, (b)
when sent by confirmed telex or facsimile if sent during normal business hours
of the recipient, if not, then on the next Business Day, (c) three (3) days
after having been sent by registered or certified mail, return receipt
requested, postage prepaid, or (d) one (1) Business Day after deposit with a
nationally recognized overnight courier, with written verification of receipt.
All communications shall be sent to the Company at the address listed on the
signature page hereto and to Holder at the applicable address set forth on the
applicable signature page to the Subscription Agreement or at such other address
as the Company or Holder may designate by ten (10) days advance written notice
to the other parties hereto.

      

      9.   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, only if the Company has
obtained the written consent of Holders owning seventy-five percent (75%) in
interest of the outstanding Warrants issued under the Subscription Agreements;
provided, that
(x) any such amendment or waiver must apply to all Warrants issued by the
Company pursuant to the Subscription Agreements; and (y) the number of Warrant
Shares subject to this Warrant, the Exercise Price and the Expiration Date may
not be amended, and the right to exercise this Warrant may not be altered or
waived, without the written consent of the Holder. No waiver of any provision
hereunder shall be effective unless it is in writing and signed by an authorized
representative of the waiving party.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      10.   SEVERABILITY. If any
provision of this Warrant is prohibited by law or otherwise determined to be
invalid or unenforceable by a court of competent jurisdiction, the provision
that would otherwise be prohibited, invalid or unenforceable shall be deemed
amended to apply to the broadest extent that it would be valid and enforceable,
and the invalidity or unenforceability of such provision shall not affect the
validity of the remaining provisions of this Warrant so long as this Warrant as
so modified continues to express, without material change, the original
intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not
substantially impair the respective expectations or reciprocal obligations of
the parties or the practical realization of the benefits that would otherwise be
conferred upon the parties. The parties will endeavor in good faith negotiations
to replace the prohibited, invalid or unenforceable provision(s) with a valid
provision(s), the effect of which comes as close as possible to that of the
prohibited, invalid or unenforceable provision(s).

      

      11.   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.

      

      12.   CONSTRUCTION;
HEADINGS. This Warrant shall be deemed to be jointly drafted by the
Company and the Holder and shall not be construed against any person as the
drafter hereof. The headings of this Warrant are for convenience of reference
and shall not form part of, or affect the interpretation of, this
Warrant.

      

      13.   DISPUTE RESOLUTION.
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 via facsimile within two (2)
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 three (3) Business Days of such disputed determination or
arithmetic calculation being submitted to the Holder, then the Company shall,
within four (4) Business Days thereafter submit via facsimile the disputed
determination of the Exercise Price or Warrant Shares to an independent,
reputable investment bank mutually agreeable to the Company and the Holder. The
Company shall cause the investment bank to perform the determinations or
calculations and notify the Company and the Holder of the results no later than
ten (10) Business Days from the time it receives the disputed determinations or
calculations. Such investment bank’s determination or calculation, as the case
may be, shall be binding upon all parties absent demonstrable error. The
expenses of the investment bank and any other reasonable expenses incurred in
good faith in connection with any such dispute will be borne by the Company
unless the investment bank or accountant determines that the determination of
the Exercise Price or the arithmetic calculation of the Warrant Shares by the
Holder was incorrect, in which case the expenses of the investment bank and any
other reasonable expenses incurred in connection with any such dispute will be
borne by the Holder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      14.   REMEDIES, OTHER OBLIGATIONS,
BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant
shall be cumulative and in addition to all other remedies available under this
Warrant, at law or in equity (including a decree of specific performance and/or
other injunctive relief), and nothing herein shall limit the right of the Holder
to pursue actual damages for any failure by the Company to comply with the terms
of this Warrant.

      

      15.   TRANSFER. This
Warrant may be offered for sale, sold, transferred, hypothecated or assigned
without the consent of the Company.  This Warrant and the Warrant
Shares have been registered by the Company with the U.S. Securities and Exchange
Commission pursuant to the Registration Statement.

      

      16.   CERTAIN DEFINITIONS.
For purposes of this Warrant, the following terms shall have the following
meanings:

      

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

      

      (b)   “Closing Sale Price” means, for
any security as of any date, the last closing trade price for such security on
the Principal Market, as reported by Bloomberg, or, if the Principal Market
begins to operate on an extended hours basis and does not designate the closing
trade price, then the last trade price of such security prior to 4:00:00 p.m.,
New York time, as reported by Bloomberg, or, if the Principal Market is not the
principal securities exchange or trading market for such security in the United
States, the last trade price of such security on the principal securities
exchange or trading market in the United States where such security is listed or
traded as reported by Bloomberg, or if the foregoing does not apply, the last
trade price of such security in the over-the-counter market on the electronic
bulletin board for such security as reported by Bloomberg, or, if no last trade
price is reported for such security by Bloomberg, the average of the ask prices
of any market makers for such security as reported on Pink Quote published by
Pink OTC Markets Inc. (formerly Pink Sheets). If the Closing Sale Price cannot
be calculated for a security on a particular date on any of the foregoing bases,
the Closing Sale Price of such security on such date shall be the fair market
value as mutually determined by the Company and the Holder. If the Company and
the Holder are unable to agree upon the fair market value of such security, then
such dispute shall be resolved in accordance with the procedures in Section 13. All such
determinations shall be appropriately adjusted for any stock dividend, stock
split, stock combination or other similar transaction during such
period.

      

      (c) “Common Shares” means (i) shares of
the Company’s common stock, $0.001 par value (the “Common Stock”), and
(ii) any share capital into which such Common Stock shall have been changed
or any share capital resulting from a reclassification of such Common
Stock.

      

      (d)   “Eligible Market” means The
New York Stock Exchange, Inc., The NYSE Amex Equities or The NASDAQ Stock
Market.

      

      (e)   “Expiration Date” means the
date seven (7) years following the Issuance Date or, if such date falls on a day
on which trading does not take place on the Principal Market (a “Holiday”), the next date that
is not a Holiday.

      

      (f)   Intentionally
omitted.

      

      (g)   “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.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (h)   “Person” means 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.

      

      (i)   “Principal Market” means The
NASDAQ Capital Market.

      

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

      

      (k)   “Trading Day” means any day on
which the Common Shares are traded on the Principal Market, or, if the Principal
Market is not the principal trading market in the United States for the Common
Shares, then on the principal securities exchange or securities market in the
United States on which the Common Shares are then traded; provided that “Trading
Day” shall not include any day on which the Common Shares are scheduled to trade
on such exchange or market for less than 4.5 hours or any day that the Common
Shares are suspended from trading during the final hour of trading on such
exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour
ending at 4:00:00 p.m., New York time).

      

      (l)   “VWAP” means, for any date, the
price determined by the first of the following clauses that applies: (a) if the
Common Shares are then listed or quoted on the Principal Market or an Eligible
Market, the daily volume weighted average price of the Common Shares for such
date (or the nearest preceding date) on the trading market on which the Common
Shares are then listed or quoted as reported by Bloomberg L.P. (based on a
Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City
time), (b) if then quoted on the  OTC Bulletin Board, the volume
weighted average price of the Common Shares for such date (or the nearest
preceding date) on the OTC Bulletin Board, (c) if the Common Shares are not then
listed or quoted for trading on the OTC Bulletin Board and if prices for the
Common Shares are then reported on Pink Quote published by Pink OTC Markets Inc.
(or a similar organization or agency succeeding to its functions of reporting
prices), the most recent bid price per Common Share so reported, or (d) in all
other cases, the fair market value of one Common Share as determined by an
independent appraiser reasonably acceptable to the Company and selected in good
faith by the Investors identified on those Subscription Agreements executed on
the Subscription Date holding a majority in interest of the Shares issued
pursuant to the Subscription Agreements which are then outstanding, the fees and
expenses of which shall be paid by the Company.

       

      [Signature Page
Follows]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN WITNESS WHEREOF, the Company has caused
this Warrant to Purchase Common Shares to be duly executed as of the Issuance
Date set out above.

       

       

      
        	 
      	
                LIGHTBRIDGE
      CORPORATION

              	 
      
	 	 	 
	 	 	 
	 
      	
                By:

              	 	 
      
	 
      	 
      	
                Name:

              	 
      	 
      
	 	 	 	 	 
	 
      	 
      	
                Title:

              	 
      	 
      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT A

      

      EXERCISE NOTICE

      

      TO
BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

      WARRANT TO PURCHASE COMMON SHARES

      

      LIGHTBRIDGE
CORPORATION

      

      The
undersigned holder hereby exercises the right to purchase   of the Common
Shares (“Warrant
Shares”) of Lightbridge Corporation, a Nevada corporation (the “Company”), evidenced by the
attached Warrant to Purchase Common Shares (the “Warrant”). Capitalized terms
used herein and not otherwise defined shall have the respective meanings set
forth in the Warrant.

      

      1.  
Payment of Exercise
Price. The holder shall pay the Aggregate Exercise Price in the sum of
$_____ to the Company in accordance with the terms of the Warrant.

      

      2.  
Delivery of Warrant
Shares. The Company shall deliver to the holder ______ Warrant Shares in
accordance with the terms of the Warrant and, after delivery of such Warrant
Shares,  
Warrant Shares remain subject to the Warrant.

      

      3.  
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 Common Shares (determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934) permitted to be beneficially owned under Section 1(d) of the
Warrant.

      

      

      

      Date: __________
___, _____

       

      
 

      

      Name of
Registered holder

       

      

      By:_________________

       

      Name:

       

      Title:

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ACKNOWLEDGMENT

      

      The
Company hereby acknowledges this Exercise Notice and hereby directs
[Computershare Trust Company] to issue the above indicated number of Common
Shares in accordance with the Transfer Agent Instructions dated [_________] from
the Company [and acknowledged and agreed to by Computershare Trust
Company].

      

      
        	 
      	
                LIGHTBRIDGE
      CORPORATION

              	 
	 	 	 	 
	 	 	 	 
	 
      	
                By:

              	 
      	 
	 
      	 
      	
                Name:

              	 
	 
      	 
      	
                 

                Title:

              	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT B

      

      ASSIGNMENT
FORM

      

      LIGHTBRIDGE
CORPORATION

      

      (To assign the foregoing Warrant,
execute this form and supply required information. Do not use this form to
purchase shares.)

      

      FOR VALUE
RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
assigned to

       

       

      
        	
                Name:

              	 
      	
                 

                 

                 

                 

                 

                (Please
      Print)

              	 
      	 
      
	 	 	 	 	 
	 
      	 
      	 
      	 
      	 
      
	
                Address:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                 

                (Please
      Print)

              	 
      	 
      

      

       

      Dated: _________
_____, _____

       

       

      
        	
                Holder’s
      Signature:

              	 
      	 
      	 
      	 
      
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 
      	 
      	 
      	 
      	 
      
	
                Holder’s
      Address:

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      

      

       

      NOTE: The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatever. Officers of corporations and those acting in a fiduciary or other
representative capacity should file proper evidence of authority to assign the
foregoing Warrant.Unassociated Document

     

    
      SUBSCRIPTION
AGREEMENT

      

      This
subscription (this “Subscription”) is
dated July 22, 2010, by and between the investor identified on the signature
page hereto (the “Investor”) and
Lightbridge Corporation, a Nevada corporation (the “Company”), whereby
the parties agree as follows:

      

      1.   Subscription.

      

      (a)  
Investor agrees to buy and the Company agrees to sell and issue to Investor (i)
such number of shares (the “Shares”) of the
Company’s common stock, $0.001 par value per share (the “Common Stock”), and
(ii) warrants to purchase such number of shares of Common Stock (the “Warrants,” and
together with the Shares, the “Securities”) as set
forth on the signature page hereto, for an aggregate purchase price (the “Purchase Price”)
equal to the product of (x) the aggregate number of Shares the Investor has
agreed to purchase and (y) the purchase price per Share set forth on the
signature page hereto.  The Purchase Price is set forth on the
signature page hereto.  The Company proposes to enter into
substantially this same form of Subscription Agreement with certain other
investors (the “Other
Investors”) and expects to complete sales of the Securities to
them.  The Investor and the Other Investors are hereinafter sometimes
collectively referred to as the “Investors,” and this
Subscription and the Subscription Agreements executed by the Other Investors are
hereinafter sometimes collectively referred to as the “Subscriptions".

      

      (b)  
The Securities have been registered on a Registration Statement on Form S-3,
Registration No. 333-162671 (the “Registration
Statement”).  The Registration Statement has been declared
effective by the Securities and Exchange Commission and is effective on the date
hereof.  A final prospectus supplement will be delivered to the
Investor as required by law.

      

      (c)  
Payment of the Purchase Price for, and delivery by the Company of, the
Securities shall take place at a closing (the “Closing”), which
shall occur no later than three (3) trading days after the date of this
Subscription, subject to the satisfaction or waiver of all the conditions to the
Closing (the “Company
Closing Conditions”) set forth in the Placement Agency Agreement (the
“Placement
Agreement”) dated July 22, 2010 by and among the Company and the
placement agent named therein (the “Placement
Agent”).

      

      (d)  
At or prior to the Closing, the Investor shall remit by wire transfer the amount
of funds equal to the Purchase Price to following account designated by the
Company and the Placement Agent pursuant to the terms of that certain Escrow
Agreement (the “Escrow
Agreement”) dated as of July 22, 2010, by and among the Company, the
Placement Agent and Collateral Agents, LLC (the “Escrow Agent”):

      

      Account
Name: Lightbridge Corporation

      Account
Number: 664686672

      Bank
Name: HSBC BANK USA, N.A.

      Bank
Address: 9201 3rd Ave, Brooklyn, NY 11209

      ABA
Number: 021001088

      Swift
Number: MRMDUS 33

      Contact:
Sophia Sudeall

      Telephone:
718-238-9329

      

      Such
funds shall be held in escrow until the Closing and delivered by the Escrow
Agent on behalf of the Investors to the Company upon the satisfaction of the
Company Closing Conditions. The Placement Agent shall have no rights in or to
any of the escrowed funds, unless the Placement Agent and the Escrow Agent are
notified in writing by the Company in connection with the Closing that a portion
of the escrowed funds shall be applied to the Placement Fee.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Investor
shall also furnish to the Placement Agent a completed W-9 form (or, in the case
of an Investor who is not a United States citizen or resident, a W-8
form).

      

      At the
Closing, upon receipt of the Purchase Price, the Company shall cause the
Securities to be delivered to the Investor, with the delivery of the Shares to
be made through the facilities of The Depository Trust Company’s DWAC system in
accordance with the instructions set forth on the signature page attached hereto
under the heading “DWAC Instructions” and the delivery of the Warrants to be
made by mail to the Investor at the address set forth on the signature page
attached hereto immediately under the Investor’s signature block.

      

      2.    Company Representations and
Warranties.

      

      (a)   The
Company represents and warrants that: (i) it has full corporate power and
authority to enter into this Subscription and to perform all of its obligations
hereunder; (ii) this Subscription has been duly authorized and executed by, and
when delivered in accordance with the terms hereof will constitute a valid and
binding agreement of, the Company enforceable in accordance with its terms,
except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the rights and remedies of
creditors generally or subject to general principles of equity; (iii) the
execution and delivery of this Subscription and the consummation of the
transactions contemplated hereby do not conflict with or result in a breach of
(x) the Company’s Articles of Incorporation or Bylaws, or (y) any material
agreement to which the Company is a party or by which any of its property or
assets is bound; (iv) the Shares when issued and paid for in accordance with the
terms of this Subscription will be duly authorized, validly issued, fully paid
and non-assessable, the Warrants when issued and paid for in accordance with the
terms of this Subscription will be duly and validly authorized by the Company
and upon delivery to the Investors at the Closing will be valid and binding
obligations of the Company, enforceable in accordance with their terms, except
as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the rights and remedies of creditors
generally or subject to general principles of equity, and the shares of Common
Stock issuable upon exercise of the Warrants when issued and paid for in
accordance with the terms thereof will be duly authorized, validly issued, fully
paid and non-assessable; (v) the Registration Statement and any post-effective
amendment thereto, at the time it became effective, did not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading; (vi)
the prospectus contained in the Registration Statement, as amended and/or
supplemented, did not contain as of the effective date thereof, and as of the
date hereof does not contain, any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading; and (vii)
all preemptive rights or rights of first refusal held by stockholders of the
Company and applicable to the transactions contemplated hereby have been duly
satisfied or waived in accordance with the terms of the agreements between the
Company and such stockholders conferring such rights.

      

      (b)   The Placement
Agreement contains certain representations, warranties, covenants and agreements
of the Company that may be relied upon by the Investor, which shall be a third
party beneficiary thereof.  The Company hereby incorporates such
representations, warranties, covenants and agreements herein, as if made on (i)
the date hereof and (ii) the date of the Closing.  The Company
confirms that neither it nor any other Person acting on its behalf has provided
the Investor or their agents or counsel with any information that constitutes or
could reasonably be expected to constitute material, nonpublic information,
except as will be disclosed in the Prospectus and/or in the Company’s Form 8-K
to be filed with the Commission in connection with the Offering.  The
Company understands and confirms that the Investor will rely on the foregoing
representations in effecting transactions in securities of the
Company.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

      3.   Investor Representations,
Warranties and Acknowledgments.

      

      (a)  
The Investor represents and warrants that: (i) it has full right, power and
authority to enter into this Subscription and to perform all of its obligations
hereunder; (ii) this Subscription has been duly authorized and executed by the
Investor and, when delivered in accordance with the terms hereof, will
constitute a valid and binding agreement of the Investor enforceable against the
Investor in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the rights and remedies of creditors generally or subject to general
principles of equity; (iii) the execution and delivery of this Subscription and
the consummation of the transactions contemplated hereby do not conflict with or
result in a breach of (A) the Investor’s articles of incorporation or bylaws (or
other governing documents), or (B) any material agreement or any law or
regulation to which the Investor is a party or by which any of its property or
assets is bound; (iv) it has had full access to the base prospectus included in
the Registration Statement, as amended and/or supplemented as of the date
hereof, and the Company’s periodic reports and other information incorporated by
reference therein, and was able to read, review, download and print such
materials; (v) in making its investment decision in this offering, the Investor
and its advisors, if any, have relied solely on the Company’s public filings
with the Securities and Exchange Commission; (vi) it is knowledgeable,
sophisticated and experienced in making, and is qualified to make, decisions
with respect to investments in securities representing an investment decision
like that involved in the purchase of the Securities; (vii) the Investor has had
no position, office or other material relationship within the past three years
with the Company or persons known to it to be affiliates of the Company; (viii),
except as set forth below, the Investor is not a, and it has no direct or
indirect affiliation or association with any, member of FINRA or an Associated
Person (as such term is defined under the NASD Membership and Registration Rules
Section 1011) as of the date hereof; and (ix) neither the Investor nor any group
of Investors (as identified in a public filing made with the SEC) of which the
Investor is a part in connection with the offering of the Securities, acquired,
or obtained the right to acquire, 20% or more of the Common Stock (or securities
convertible into or exercisable for Common Stock) or the voting power of the
Company on a post-transaction basis.

       

      
 

      
        
          

        

      

      (If no
exceptions, write “none.” If left blank, response will be deemed to be
“none.”)

      

      (b)  
The Investor also represents and warrants that, other than the transactions
contemplated hereunder, the Investor has not directly or indirectly, nor has any
person acting on behalf of or pursuant to any understanding with the Investor,
executed any purchase or sale in securities of the Company, including “short
sales” as defined in Rule 200 of Regulation SHO under the Securities Exchange
Act of 1934 (“Short
Sales”), during the period commencing from the time that the Investor
first became aware of the proposed transactions contemplated hereunder until the
date hereof (the “Discussion
Time”).  The Investor has maintained the confidentiality of all
disclosures made to it in connection with this transaction (including the
existence and terms of this transaction).

      

      4.   Investor Covenant Regarding
Short Sales and Confidentiality.

      

      (a)   The
Investor covenants that neither it nor any affiliates acting on its behalf or
pursuant to any understanding with it will execute any transactions in
securities of the Company, including Short Sales, during the period after the
Discussion Time and ending at the time that the transactions contemplated by
this Subscription are first publicly announced through a press release and/or
Form 8-K.  The Investor covenants that until such time as the
transactions contemplated by this Subscription are publicly disclosed by the
Company through a press release and/or Form 8-K, the Investor will maintain the
confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this
transaction).

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      (b)   The
Company and the Investor agree that the Company shall (a) no later than 9:00 am
New York City time on the business day immediately following the date hereof,
issue a press release announcing the material terms and conditions of the
offering and (b) on the business day immediately following the date hereof, file
a current report on Form 8-K with the Securities and Exchange Commission
including, but not limited to, a form of this Agreement as an exhibit
thereto.  From and after the issuance of such press release, the
Company shall have publicly disclosed all material, non-public information
delivered to the Investor by the Company, if any, or any of its officers or
directors.  The Company shall not provide the Investor with any
material, non-public information following the issuance of the press
release.  The Company shall not identify any Investor by name in any
press release without such Investor’s prior written consent.

      

      5.   Miscellaneous.

      

      (a)   This
Subscription constitutes the entire understanding and agreement between the
parties with respect to its subject matter, and there are no agreements or
understandings with respect to the subject matter hereof which are not contained
in this Subscription.  This Subscription may be modified only in
writing signed by the parties hereto.

      

      (b)   This
Subscription may be executed in any number of counterparts, all of which taken
together shall constitute one and the same instrument and shall become effective
when counterparts have been signed by each party and delivered to the other
parties hereto, it being understood that all parties need not sign the same
counterpart.  Execution may be made by delivery by
facsimile.

      

      (c)   The
provisions of this Subscription are severable and, in the event that any court
or officials of any regulatory agency of competent jurisdiction shall determine
that any one or more of the provisions or part of the provisions contained in
this Subscription shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision or part of a provision of this Subscription
and this Subscription shall be reformed and construed as if such invalid or
illegal or unenforceable provision, or part of such provision, had never been
contained herein, so that such provisions would be valid, legal and enforceable
to the maximum extent possible, so long as such construction does not materially
adversely effect the economic rights of either party hereto.

      

      (d)   All
communications hereunder, except as may be otherwise specifically provided
herein, shall be in writing and shall be mailed, hand delivered, sent by a
recognized overnight courier service such as Federal Express, or sent via
facsimile and confirmed by letter, to the party to whom it is addressed at the
following addresses or such other address as such party may advise the other in
writing:

      

      To the Company:  as set forth
on the signature page hereto.

      

      To the Investor:  as set
forth on the signature page hereto.

      

      All
notices hereunder shall be effective upon receipt by the party to which it is
addressed.

      

      (e)    This
Subscription shall be governed by and interpreted in accordance with the laws of
the State of New York for contracts to be wholly performed in such state and
without giving effect to the principles thereof regarding the conflict of
laws.  To the extent determined by such court, the prevailing party
shall reimburse the other party for any reasonable legal fees and disbursements
incurred in enforcement or protection of any of its rights under this
Subscription.

      

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

      

      If the
foregoing correctly sets forth our agreement, please confirm this by signing and
returning to us the duplicate copy of this Subscription.

       

      
        	 
      	
                LIGHTBRIDGE
      CORPORATION

              	 
	 
      	 
      	 
      	 
	 
      	
                By: 
      

              	 
      	 
	 
      	 
      	
                Name:

              	 
	 
      	 
      	
                Title:

                 

                Address for
      Notice:

                 

                Lightbridge
      Corporation

                1600
      Tysons Boulevard, Suite 550

                McLean,
      Virginia 22102

                Attention:  Chief
      Executive Officer

                Facsimile
      No.: [·]

                Attention:
      Chief Executive Officer

              	 

      

       

      

      

      [Issuer’s
Signature Page to Subscription Agreement]

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      
        	 
      	 
      	 
      
	
                INVESTOR:
      ________________________________

              	 
      	 
      
	 
      	 
      	 
      
	
                By:  ________________________________________

              	 
      	 
      
	
                       Name:

              	 
      	 
      
	
                       Title:

              	 
      	 
      
	 	 	 
	
                Number of
      Shares:____________________________

              	 
      	 
      
	 	 	 
	Number of
      Warrants:__________________________ 	 	 
	 	 	 
	Purchase Price per Unit:
      $______________________ 	 	 
	 	 	 
	
                Aggregate Purchase
      Price: $____________________ 
      

              	 
      	 
      
	 	 	 
	
                Address for Notice and
      mailing the Warrants:

              	 
      	 
      
	
                ____________________________________________

              	 
      	 
      
	
                ____________________________________________

              	 
      	 
      
	
                Facsimile:
      ___________________________________

              	 
      	 
      
	
                Attention:
      ___________________________________

              	 
      	 
      
	 
      	 
      	 
      
	
                DWAC
      Instructions:

              	 
      	 
      
	 	 	 
	
                Name
      of DTC Participant (broker-dealer at which the account or accounts to be
      credited with the Shares are maintained):

              	 
      	
                _____________________________________________

              
	 
      	 
      	 
      
	
                DTC
      Participant Number:

              	 
      	
                

                  _____________________________________________

                

              
	 
      	 
      	 
      
	
                Name
      of Account at DTC Participant being

                credited
      with the Shares:

              	 
      	
                 

                

                  _____________________________________________

                

              
	 
      	 
      	 
      
	
                Account
      Number at DTC Participant being credited

                with
      the Shares:

              	 
      	
                

                  _____________________________________________

                

              

      

       

      

      

      [Investor’s
Signature Page to Subscription Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]