Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Global Energy Inc. - Exhibit 10.4

Exhibit 10.4

LICENSE AGREEMENT

     This License Agreement (this
“Agreement”) is made and entered into as of the 6th day of February,
2008, by and between AlphaKat - Global Energy GmbH, a company organized and
existing under the laws of Germany (“Licensor”), and American Renewable Diesel,
LLC, a limited liability company organized and existing under the laws of the
State of Delaware (“American”).

     WHEREAS, AlphaKat GmbH, a company
organized and existing under the laws of Germany (as further defined below,
“AK”), has granted certain rights to Licensor with respect to a proprietary
technology to convert waste material that contains hydrocarbons into diesel oil
(as further defined below, the “Technology”) in various countries, including the
United States;

     WHEREAS, American is interested
in obtaining license rights from Licensor with respect to the Technology, all on
the terms and conditions set forth herein, to secure or to help secure orders
for the sale of the equipment that utilizes the Technology; and

     WHEREAS, Licensor is willing to
grant such license rights to American, all on the terms and conditions set forth
herein;

     NOW, THEREFORE, in light of the
mutual premises set forth herein and other good and valuable consideration, the
receipt and the sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound hereby, agree as follows.

ARTICLE 1 – DEFINITIONS AND INTERPRETATION

Section 1.1 Capitalized Terms. Unless otherwise
specified herein, the following capitalized terms shall have the following
meanings:

     “Affiliate” means, in
relation to any Person, any other Person that controls, is controlled by, or is
in common control with, such Person. For the purpose of this definition, control
means the direct or indirect control of fifty percent (50%) or more of the
voting rights in such Person or the power to direct the management or policies
of such Person, whether by operation of law, by contract or otherwise. Except as
shall otherwise be expressly provided in this Agreement, and for the avoidance
of any doubt, as of the Effective Date, (i) Licensor and AK are Affiliates and
(ii) Licensor and Global are Affiliates, but AK and Global are not
Affiliates.

     “Agreement” has the
meaning set forth in the first paragraph hereof.

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     “AK” means AlphaKat GmbH,
a company organized and existing under the laws of Germany, and its successors
and permitted assigns.

     “American” has the meaning
set forth in the first paragraph hereof and includes its successors and
permitted assigns.

     “Commercial Waste” means
all non-hazardous solid waste that is collected from commercial establishments,
including residential apartment buildings, office buildings, restaurants,
industrial parks, all other business facilities and all recyclable materials
from recycling facilities.

     “Competitor of Licensor”
means a Person, directly or through Affiliates, engaged primarily in the
business of selling equipment that converts waste or organic feedstock(s)
containing hydrocarbon materials into diesel fuel or any Person that is involved
primarily in the development of such equipment or the technology on which it is
based.

     “Contracted Waste” means
all non-hazardous waste, regardless of the source of such waste, which is under
contract to be delivered to Covanta or any of its Affiliates for disposal in, or
processing by, one of the facilities owned or operated by Covanta or any of its
Affiliates.

     “Covanta” means Covanta
Energy Corporation, a Delaware corporation.

     “Covanta License
Agreement” means the License Agreement of even date herewith entered into
between Licensor and Covanta, a copy of which is attached hereto as Exhibit
1.

     “Customer” means any
Person that is not owned or controlled by American that wants to purchase a
System for its own account.

     “Default” has the meaning
set forth in Section 10.1.

     “Demonstration Plant”
means the System to be purchased by Covanta as provided for in the Covanta
License Agreement, the order for which has been procured by American.

     “Dispute” has the meaning
set forth in Section 9.1.

     “Effective Date” has the
meaning set forth in Section 5.1.

     “Extended Period” means
the period that begins on the date that the Initial Period terminates and ends
on the date that this Agreement terminates.

     “Feedstock” means
Household Waste, Contracted Waste, Commercial Waste or Radial Biomass, as the
case may be.

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     “Full Right” means that
the Person being granted the right(s) described herein shall be the only Person
that is entitled to exercise such right(s) so long as this Agreement is in
effect and that no other Person shall be authorized, by the grantor of such
right(s), to exercise such right(s) or be granted such right(s).

     “Global” means Global
Energy, Inc., a Nevada corporation.

     “Household Waste” means
all non-hazardous, post-recycled municipal solid waste which is collected from
residences, which waste is of the type normally accepted for processing at waste
to energy facilities in the United States.

     “ICC” means the
International Chamber of Commerce.

     “ICC Rules” has the
meaning set forth in Section 9.1.

     “Improvements” means all
the techniques, enhancements, modifications, changes, experience, methods,
information, data or knowledge that will be created or acquired in the future
relating to the Technology and/or the manufacturing of such components for
Systems (whether or not patentable, useful or workable) through the
implementation, development, testing and improvement of the Technology.

     “Initial Period” means the
period which begins on the date that the Interim Period ends and terminates on
the second (2nd) anniversary thereof.

     “Intellectual Property”
means any intellectual property and/or proprietary information and materials
relating to the Technology along with all rights therein, whether existing
before or conceived or developed after the Effective Date (except as otherwise
expressly provided), including: (i) patents, patent applications, patent
disclosures and inventions (whether or not patentable and whether or not reduced
to practice), including the Patents; (ii) trademarks, service marks, trade
dress, trade names, corporate names, logos, slogans and Internet domain names,
together with all goodwill associated with each of the foregoing; (iii)
copyrights and copyrightable works; (iv) trade secrets, confidential information
and know-how (including ideas, formulae, compositions, manufacturing and
production processes and techniques, research and development information, test
data and results, drawings, specifications, designs, supplier lists and related
information); and (vi) registrations, applications, divisionals, continuations,
continuations-in-part, foreign counterparts and renewals for any of the
foregoing.

     “Interim Period” means the
period which begins on the Effective Date and ends twelve (12) months following
the date that the Demonstration Plant has been successfully commissioned and is
ready for commercial operation; provided, however, that if the
Demonstration Plant passes the performance test that is agreed to by AK and
Covanta (all as further provided for in Section 2.2(c) of the Covanta License
Agreement) more than thirty (30) days prior to the scheduled end of the Interim
Period, the Interim Period shall terminate thirty (30) days following the date
that the Demonstration Plant has passed 

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such performance test, Licensor to provide a notice to such
effect to American in writing; provided further, however, that the
Interim Period shall in no event be longer than two (2) years.

     “KDV 500” means the system
of components, including all of the structural steel, piping, pumps, vessels,
control systems, wiring, two proprietary “mixing turbine pumps” and the
operations, maintenance and start-up manuals provided by AK, to convert
hydrocarbon feedstock, including any Feedstock, into diesel oil using the
Technology which is capable of producing a minimum of 500 liters of diesel oil
per hour.

     “Licensor” has the meaning
set forth in the first paragraph hereof and includes its successors and
permitted assigns.

     “Parties” means Licensor
and American.

     “Party” means Licensor or
American, as the case may be.

     “Patents” means any
existing or future patent applications, patents, registrations, utility models
and utility model applications relating to the Technology which are necessary or
useful to manufacture or to sell, offer for sale, use or otherwise make
available Systems or the components of Systems, including those set forth in
Exhibit 2 attached hereto.

     “Person” means any natural
person, corporation, company, partnership, business trust, governmental
authority or other entity.

     “Purchase Order” has the
meaning set forth in Section 2.5.

     “Purchaser” has the
meaning set forth in Section 2.5.

     “Qualified Right” means
that the Person being granted the right(s) described herein shall be entitled to
exercise such right(s) so long as this Agreement is in effect, but the grantor
of such right(s) shall be entitled to grant such right(s) or allow such right(s)
to be exercised by all other Persons except a Person that is precluded from
exercising such right(s) under the express terms hereof.

     “Radial Biomass” means
biomass, including wood, wood waste and other types of cellulosic materials
which are collected within or from an area within a 100 mile radius of any
biomass facility owned by Covanta or an Affiliate of Covanta in the states of
California or New York as of the Effective Date.

     “Rights Agreements” means
(i) the “Terms of Agreement” dated May 2, 2007, (ii) the “Shareholders’
Agreement” dated July 10, 2007 and (iii) the Articles of Association of Licensor
dated November 14, 2007 and November 22, 2007, a copy of each of which is
attached hereto in Exhibit 2.

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     “System” means any system
of components, whether it is in existence today or developed hereafter,
including all of the structural steel, piping, pumps, vessels, control systems,
wiring, the proprietary “mixing turbine pump(s),” any new components of any
future system of components and all of the operations, maintenance and start-up
manuals provided by AK, to convert hydrocarbon feedstock, including any
Feedstock, into diesel oil using the Technology, including, for the avoidance of
doubt, the KDV 500.

     “Technology” means the
proprietary, renewable diesel technology developed by Dr. Christian Koch (as
well as any related technology licensed to Dr. Christian Koch or to AK) to
convert municipal solid waste, organic materials, sludge and other hydrocarbon
materials, including Feedstock, to diesel oil, including all Improvements to
such technology made or acquired from time to time, including Intellectual
Property, Systems, the formulation of catalysts used in Systems and all related
materials and information.

     “Territory” has the
meaning set forth in Section 2.1.

     “Third Party Purchaser”
has the meaning set forth in Section 2.5.

Section 1.2 Interpretation. In this Agreement, unless
otherwise indicated or required by the context:

     (a) Reference to and the
definition of any document (including this Agreement) or any applicable law
shall be deemed a reference to such document or applicable law as it may be
amended, supplemented, revised or modified from time to time;

     (b) All references to an
“Article,” “Section” or “Exhibit” are to an Article or Section hereof or to an
Exhibit attached hereto;

     (c) Article and Section headings
and other captions are for the purpose of reference only and do not limit or
affect the meaning of the terms and provisions hereof;

     (d) Defined terms in the singular
include the plural and vice versa, and the masculine, feminine and neuter gender
include all genders;

     (e) The words “hereof,” “herein”
and “hereunder” and words of similar import refer to this Agreement as a whole
and not to any particular provision of this Agreement; and

     (f) The words “include,”
“includes” and “including” mean include, includes, and including “without
limitation” and “without limitation by specification.”

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ARTICLE 2 – LICENSE RIGHTS

Section 2.1 Grant of License Rights. Subject to the
terms of this Agreement, Licensor hereby grants American the Full Right in the
Territory to market and sell Systems and utilize the Technology. As of the
Effective Date, the territory (the “Territory”) shall be the states of
California, New York and Texas, it being agreed that Licensor shall not grant
any Person the right to sell Systems in New Jersey or Florida before the date by
which American must satisfy the requirement set forth in clause (ii) of the
first sentence of Section 2.1(b) . For the avoidance of doubt, American shall be
entitled to exercise any or all of the license rights that are granted to it in
the Technology itself or through any of its Affiliates, but American shall not
have the right to issue sublicenses to any Person other than an Affiliate. The
Parties further agree as follows:

     (a) Notwithstanding anything that
is contained herein to the contrary, American shall be credited for the sale of
all of the Systems sold to Covanta during the term of this Agreement regardless
of whether such Systems are for use inside or outside the Territory.

     (b) American shall be required to
secure or to help Licensor or Global to secure (i) an order for one KDV 500
prior to the end of the Interim Period (it being agreed that the Purchase Order
being placed by Covanta for the Demonstration Plant satisfies this requirement)
and (ii) orders for an additional two KDV 500s prior to the end of the Initial
Period. If American fails to secure or help Licensor or Global to secure orders
for a total of three KDV 500s prior to the end of the Initial Period, Licensor
shall have the right, in its sole and absolute discretion, to notify American
that it must give up its Full Rights for one (1) of the states in the Territory
(such state to be selected by American). If American meets the two (2)
requirements set forth in this Section 2.1(b), the Territory thereafter shall be
the states of California, New York, Texas, New Jersey and Florida. The phrases
“secure orders” as used herein mean that a Person has executed a Purchase Order
for one or more KDV 500s and made the initial deposit thereunder.

     (c) Licensor acknowledges and
agrees that the ability of American to meet the requirements set forth in this
Section 2.1 will depend, in part, on the initial three KDV 500s installed in the
United States (including the Demonstration Plant) demonstrating the technical
and financial viability of the Technology. Notwithstanding anything contained
herein to the contrary, (i) if there is any delay in the installation of any of
the initial three (3) KDV 500s in the United States, including the Demonstration
Plant (with such KDV 500s meeting all performance guarantees), beyond the date
committed by AK in the applicable Purchase Order or (ii) if any such KDV 500s
experience operating or financial problems due to a failure of the KDV 500 to
operate in accordance with its performance guarantees, then all of the time
periods set forth in this Section 2.1 shall be extended automatically for the
full period of all such delays for all purposes hereof.

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     (d) During the Extended Period,
American shall be required to secure orders for: (i) two (2) KDV 500s per year
for each of the first two (2) full calendar years of the Extended Period; (ii)
five (5) KDV 500s per year for each of the next two (2) calendar years of the
Extended Period; and (iii) ten (10) KDV 500s per year for each calendar year
thereafter, each such determination to be made on a cumulative basis (such that
American shall be entitled to credit additional KDV 500s sold in one year above
the minimum requirement for that year to a later year). If American fails to
meet any such targets in any calendar year during the Extended Period, Licensor
shall have the right, in its sole discretion, to notify American that it shall
only have a Qualified Right in all of the states in the Territory to market and
sell Systems and utilize the Technology for the remainder of the term of this
Agreement. Licensor agrees that all Systems sold by Licensor outside the
Territory that are pursuant to a referral made by American shall count towards
American’s minimum purchase requirements hereunder. However, none of the Systems
purchased by Covanta or an Affiliate of Covanta for its own account during the
Extended Period shall count towards meeting American’s minimum purchase
requirements unless the sale of Systems is to a project developed by American or
an Affiliate of American in which Covanta is an investor.

     (e) For purpose of meeting any of
the minimum order thresholds for KDV 500s which are set forth in this Section
2.1, if a System is developed by AK (such as the “KDV 2000” which is currently
under development by AK) that is capable of producing a higher amount of diesel
oil per hour than a KDV 500 (expected to be 2,000 liters per hour in the case of
a “KDV 2000” as compared to 500 liters per hour for a KDV 500), then such System
will count as more than one KDV 500 based on the amount of diesel oil per hour
capable of being provided (expected to be four KDV 500s in the case of a “KDV
2000”).

     (f) Notwithstanding anything
contained herein to the contrary, American shall not lose its Full Rights in any
state in the Territory if it fails to meet the cumulative order requirements in
Section 2.1(b) or (d) if (i) AK is not able to produce enough Systems to meet
the Purchase Orders secured by American, Licensor and Global or (ii) any
problems experienced with the Technology in the Systems installed by AK make it
commercially unreasonable for American to secure orders for any additional
Systems until such problems have been resolved, in which case the Parties shall
agree to an equitable adjustment, in good faith, to the cumulative requirements
provisions of Sections 2.1(b) and (d) or extend the date for such requirements
to be performed.

     (g) If American fails to meet its
performance obligations under this Section 2.1 and Licensor elects to require
American to give up its Full Rights in one or more of the states in the
Territory as further provided for herein, American’s sole penalty will be for
its rights in such state(s) to become a Qualified Right to market and sell the
Technology for the remainder of the term of this Agreement.

Section 2.2 Obligation to Make Referrals. If any Person
contacts Licensor or any of its Affiliates regarding the purchase of one or more
Systems for installation in the Territory, Licensor shall refer such Person to
American.

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Section 2.3 Sales to Covanta Energy. The sale of all
Systems to Covanta or to any of its Affiliates, including the Demonstration
Plant, shall be pursuant to Purchase Orders placed with AK through Licensor, and
American shall derive a license fee on all such sales. Licensor shall mark up
the cost of all of the Systems that are sold to Covanta or any of its Affiliates
(other than the System for the Demonstration Plant) by [*****] percent [*****]
and pay [*****] percent [*****] of such amount to American as its commission.
Such commissions shall be paid to American as the payments that are due from
Covanta or its Affiliates are received under the applicable Purchase Order.

Section 2.4 Commission on Sales to Other Customers.
American shall be entitled to a commission of [*****] percent [*****] on all
Systems that are sold in the Territory. If American identifies a Customer that
is interested in purchasing one or more Systems in an area that is outside the
Territory, American shall refer such Customer to Licensor and, if such sale is
completed (the decision to complete such sale to be made by Licensor in its sole
discretion), American shall be entitled to a commission of [*****] percent
[*****] on such sale. Licensor shall mark up the cost of all of the Systems on
which American is entitled to a commission by [*****] percent [*****] and pay
[*****] percent [*****] of such amount to American as its commission.
Commissions shall be paid to American as the payments that are due under the
applicable Purchase Orders are received. For the avoidance of doubt, in
connection with Customers that are identified by American outside of the
Territory, Licensor shall be obligated to pay the commission to American if the
System is sold within two (2) years after the Customer is identified to Licensor
by American.

Section 2.5 Purchase Orders. All purchase orders for
System(s) (“Purchase Orders”) shall be entered into by and between AK (or its
designee) and the ultimate purchaser of such System(s) (the “Purchaser”),
although all Purchase Orders shall be placed through Licensor and provide for
the payment of a sales commission to Licensor (except for the Systems sold for
the Demonstration Plant). Each Purchase Order shall include a set of
representations and warranties made by AK to the Purchaser which are consistent
with those provided by Licensor to American in Article 8 and a non-exclusive,
irrevocable and perpetual license (a “Use License”) for the Purchaser to (i)
use, practice, operate, maintain, repair and make Improvements to the System(s),
(ii) purchase the catalyst that is required for the operation of the System(s)
from AK and/or any Person that is authorized to manufacture and/or sell such
catalyst by AK, (iii) purchase components and spare parts for the System(s) from
AK and/or any Person that is authorized to manufacture and/or to sell such
components and spare parts and (iv) reproduce, modify and internally distribute
copies of any and all materials and information received by American from
Licensor and/or AK relating to the System(s), in whole or in part. In addition,
if the Purchaser sells or transfers any of the System(s) to any Person (a “Third
Party Purchaser”), the Purchaser shall be entitled to transfer its Use License
to such Third Party Purchaser and each Third Party Purchaser shall be entitled
to transfer such Use License to another Third Party Purchaser. Notwithstanding
anything to the contrary contained or implied in clauses (ii) or (iii) of this
Section 2.5, all Purchasers and all Third Party Purchasers shall be entitled to
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are commercially available from any Person. Further, if AK and
the Persons authorized to make spare parts and components that are not
commercially available are unable to timely supply the spare parts and
components ordered by a Purchaser or a Third Party Purchaser, such Purchaser or
Third Party Purchaser shall be authorized to purchase such spare parts and
components from any other Person and to make such spare parts and components
itself.

ARTICLE 3 – ANNUAL PRICING; NO ROYALTIES

Section 3.1 Annual Pricing. Licensor, American and AK
shall agree on a procedure to establish the price, at the end of each November,
for the following year, of (i) Systems, (ii) the catalyst that is used with the
Technology, (iii) replacement/spare parts for Systems and (iv) the cost for AK
or Licensor to provide services on Systems or other engineering services in
order to (a) ensure that such prices are not increased inappropriately from year
to year and (b) to provide price certainty to American for the upcoming year in
connection with its sales and marketing efforts. The Parties are aware that the
current price of a KDV 500 includes a technology fee of [*****] and acknowledge
that the minimum technology fee to AK from the sale of a System in the future,
as arrangements are put in place by AK to broaden the manufacturing base and
reduce the total cost of the Systems will include a technology fee not to exceed
[*****]. Licensor, American and AK shall use their best efforts to negotiate in
good faith and agree as soon as practicable to the terms of such procedure and
any other mechanisms that may be necessary or helpful to determine the pricing
for the Systems or any other items. Licensor shall provide American, prior to
the end of each November, with the updated pricing for the following year.
Licensor further agrees (and AK, by its execution of this Agreement in the space
provided below, agrees) that American’s Customers will not be charged more
during any year for a System than the lowest price that is paid by any other
licensee of Licensor or customer of AK for a comparable System in such year in
the United States.

Section 3.2 No Royalties. Neither American (or its
Affiliates) nor any Purchasers or Third Party Purchasers shall be required to
pay royalties to Licensor, AK, Global or any other Person in connection with the
exercise by American or its Affiliates of any of the license rights in the
Technology granted under this Agreement.

ARTICLE 4 – CERTAIN OBLIGATIONS OF THE PARTIES

Section 4.1 Supply of Information. Licensor shall supply
American from time to time with all information relating to the installation and
operation of Systems reasonably required or requested by American. Further,
Licensor and/or AK shall provide American with any revised or updated
installation or operating manuals or bulletins as soon as such materials are
completed and available for distribution.

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Section 4.2 Provision of Technical Assistance.
Notwithstanding Section 4.1, Licensor shall not have any obligation to provide
any engineering services or technical assistance regarding the Technology or the
Systems under this Agreement. Any such services and assistance may be provided
under other agreements with Licensor or with AK.

Section 4.3 Acknowledgment and Agreement. Licensor shall
arrange for Dr. Christian Koch to execute this Agreement in the space that is
provided below, on behalf of himself and in his capacity as the President of AK,
to evidence (i) their acknowledgement that they have reviewed this Agreement and
agree to any obligations on their parts, (ii) their consent to the terms of this
Agreement and (iii) their agreement for AK to enter into a substantially similar
form of license agreement with American if the rights of Licensor pursuant to or
as contemplated by the Rights Agreements are not supplemented to the extent
necessary to enable Licensor to grant all of the rights being granted to
American hereunder or if any such rights granted to Licensor are terminated for
any reason, such new license agreement to preserve American’s Full Rights and/or
Qualified Rights in the Territory.

ARTICLE 5 – EFFECTIVE DATE AND TERM

Section 5.1 Effective Date. This Agreement shall become
effective on the date that it has been signed by both of the Parties and by Dr.
Christian Koch (the “Effective Date”).

Section 5.2 Term of the Agreement. This Agreement shall
continue in effect from the Effective Date until July 1, 2028 unless it is
terminated earlier by the provisions hereof or by either Party in accordance
with its rights hereunder.

ARTICLE 6 – INTELLECTUAL PROPERTY

Section 6.1 No Transfer of Ownership of the Technology.
The Parties agree that this Agreement shall not transfer the ownership of the
Technology or any of the Intellectual Property therein, and that American will
not have any right, title or interest in or to the Technology, except as
expressly licensed to American pursuant to this Agreement or any separate
agreement.

Section 6.2 Improvements. All Improvements conceived,
developed or acquired by AK or Licensor during the term hereof shall be included
under the license rights granted herein. All such Improvements conceived,
developed or acquired exclusively by AK or Licensor shall remain the property of
AK or Licensor, respectively. 

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ARTICLE 7 – INFRINGEMENT AND DESIGNATIONS

Section 7.1 Notice of Infringements. During the term
hereof, Licensor and American shall promptly notify each other in writing with
respect to any claim of infringement of any Patent or other right asserted
against it by any Person arising out of the exercise of the rights being granted
hereunder.

Section 7.2 Indemnity for Infringement or
Misappropriation. Licensor shall indemnify and hold harmless American, its
Affiliates, any Purchasers and Third Party Purchasers (collectively, the
“Indemnified Parties”) from any and all claims of infringement or
misappropriation and attendant damages and costs by virtue of the exercise of
the rights granted to an Indemnified Party hereunder or under any Purchase
Order. To secure the indemnity provided for in this Section 7.2, the Indemnified
Party shall: (i) provide notice to Licensor of the claim giving rise to the
liability as soon as reasonably practicable after receiving a notice of the
claim, it being agreed that any delay in providing such notice to Licensor shall
not relieve Licensor of its indemnity obligations except to the extent it was
prejudiced by such delay; and (ii) use reasonable business efforts to cooperate
fully with Licensor in defending the claim; provided, however,
that Licensor shall not enter into any settlement or compromise creating any
payment obligation, admission or other obligation on the part of any Indemnified
Party without such Indemnified Party’s prior written consent. The Indemnified
Parties shall permit Licensor to defend and compromise such claim, but each
Indemnified Party may employ its own counsel, at its own expense, to assist
Licensor with respect to any such claim. Notwithstanding the foregoing, the
Indemnified Parties shall not be entitled to indemnification hereunder if the
infringement is due to the Indemnified Party or its Affiliates: (i) using the
System in violation of the express written operating instructions that are
provided by AK if the subject claim would have been avoided but for such
unauthorized use; or (ii) modifying the System in a manner which is not
authorized by Licensor which actually causes such infringement if the subject
claim would have been avoided but for such modification.

Section 7.3 Use of Designations. If requested by
Licensor in writing, American shall, in accordance with the written instructions
of Licensor, provide for any System or any part of the Technology, legible
statutory notice of any Patent, the existence of the license herein granted and
the identity of Licensor and/or AK. Notwithstanding anything contained herein to
the contrary, no rights are being granted by either Party to the other regarding
their respective trade names or trademarks.

Section 7.4 Limitation of Liability. The Parties
expressly waive any claims against each other and their respective Affiliates
for indirect, special, non-compensatory, incidental, punitive, exemplary or
consequential damages of any type, whether arising in contract or tort
(including negligence, whether sole, joint or concurrent or strict liability),
arising out of or relating to this Agreement or a breach hereof;
provided, however, that this provision shall not waive any claims
that the Parties may have under any other agreements entered into between the
Parties. The limitations on liability and the remedies set forth in this
Agreement have been expressly bargained for by the Parties and reflect the
knowing allocation of the risks inherent in this Agreement between the
Parties.

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ARTICLE 8 – REPRESENTATIONS AND WARRANTIES

Section 8.1 Party Representations. As of the Effective
Date, each Party represents and warrants to the other Party that:

     (a) It is duly organized and
validly existing and, where applicable, is in good standing under the laws of
the jurisdiction of its formation and it has all requisite power and authority
to enter into and perform its obligations under this Agreement; 

     (b) The execution, delivery and
performance of this Agreement have been authorized and approved by its Board of
Directors or Managers, as the case may be, and do not and will not (i) violate
any law, rule, regulation, order, decree or permit which is applicable to it or
(ii) violate its organizational documents or any agreement to which it is a
party;

     (c) This Agreement is a legal and
binding obligation of such Party, enforceable against such Party in accordance
with its terms, except to the extent enforceability is modified by bankruptcy,
reorganization and other similar laws affecting the rights of creditors
generally and by general principles of equity; and

     (d) There is no litigation
pending or, to the best of its knowledge, threatened to which such Party, its
parent or any of its subsidiaries is a party that, if adversely determined,
would have a material adverse effect on the financial condition, prospects or
business of such Party or its ability to perform its obligations under this
Agreement.

Section 8.2 Licensor Representations Regarding the
Technology. As of the Effective Date, Licensor represents and warrants to
American, its Affiliates and each Purchaser and Third Party Purchaser that:

     (a) A list of all relevant
Patents as of the Effective Date is set forth in Exhibit 3 attached hereto and
all such Patents are current and valid as of the Effective Date with any and all
required fees to maintain the same having been paid;

     (b) Licensor has licensed or
otherwise has or otherwise will secure the rights in and to the existing and
future Technology, including Intellectual Property, necessary for Licensor to
grant to American the rights being granted in this Agreement, and there are no
rights, options or other contractual obligations on the part of AK, Dr.
Christian Koch of any other Person that would result in such Technology,
including Intellectual Property, no longer being owned by or licensed to AK or
licensed by Licensor, and AK shall maintain, prosecute and defend (or cause any
other Person that owns any Patents to maintain, prosecute and defend) all
Patents and pay all fees in connection therewith;

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REDACTED. CONFIDENTIAL TREATMENT REQUESTED 

     (c) The Technology, including
Intellectual Property, does not use or include or rely on any third party
intellectual property and no third party owns any rights, including intellectual
property rights, necessary to American’s exercise of any of its rights under
this Agreement that have not been licensed to AK;

     (d) Except for any rights granted
to Covanta or Global, no rights have been provided to, or authorized for, any
Person to exercise any rights in, the Technology, including the Intellectual
Property, which are inconsistent with the rights granted to American
hereunder;

     (e) The Technology as currently
used by AK and as planned to be used by Licensor and American in accordance with
the terms of this Agreement, does not infringe, misappropriate or otherwise
violate any patent, copyright, trademark, trade secret or other proprietary or
intellectual property right of any Person, and AK and/or Licensor have not
received, and to its knowledge does not know of any facts that could give rise
to, any charge, complaint, claim, demand, notice or other communication (i)
alleging any such infringement, misappropriation or other violation, (ii)
requesting that AK and/or Licensor take a license from any Person or (iii)
challenging the validity or enforceability of the Intellectual Property. AK
and/or Licensor has no knowledge of any current or threatened infringement,
misappropriation or other violation by any Person of the Intellectual Property,
and AK and/or Licensor has not, and has no knowledge of any facts that would
require that there be, sent or otherwise communicated to any Person any charge,
complaint, claim, demand or notice asserting infringement, misappropriation or
other violation of any of any such Intellectual Property; and

     (f) Licensor has provided
American with a true and correct copy of the Rights Agreements and there has not
been any amendment to the Rights Agreements since they were executed. Licensor
shall provide American with a true and correct copy of any amendments made to
the Rights Agreements during the term hereof and a copy of any additional
agreements entered into by Licensor with AK or Dr. Christian Koch regarding the
rights of Licensor with respect to the Technology. Licensor shall provide
American with a copy of any default notice or any similar communications
received by Licensor from AK during the term hereof and provide American with
updates from time to time regarding the resolution of any such termination
notice. Licensor shall not agree to or make any amendment to any of the Rights
Agreements or enter into any other agreements regarding its rights to the
Technology that would reduce or affect any of American’s rights under this
Agreement.

ARTICLE 9 – RESOLUTION OF DISPUTES

Section 9.1 Dispute Resolution. The Parties agree to
cooperate with each other in good faith to try to resolve any controversy or
dispute between them arising under this Agreement (each a “Dispute”) in
accordance with the following procedures:

     (a) If a Dispute cannot be
resolved informally, such Dispute shall initially be referred, through written
notice by one Party to the other Party, to a meeting of senior 

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management representatives of the Parties. The senior
management representatives will meet to resolve the Dispute within fifteen (15)
days following presentation of the matter to them.

     (b) If the Dispute cannot be
resolved pursuant to Section 9.1(a), the Chief Executive Officers of the Parties
shall meet to resolve the Dispute within fifteen (15) days following the
conclusion of the consideration of the Dispute under Section 9.1(a) .

     (c) If the matter is not resolved
within thirty (30) days of the written notice in Section 9.1(a), either Party
may submit the Dispute to arbitration by submitting a Request for Arbitration
pursuant to Article 4 of the Rules of Arbitration of the ICC or such equivalent
arbitration rules of the ICC then in effect (the “ICC Rules”), provided that
nothing in this Agreement shall prevent or delay either Party from applying for
interim or conservatory measures pursuant to Article 23 of the ICC Rules.

Section 9.2 Arbitration of Unresolved Disputes.

     (a) All Disputes arising out of
or in connection with this Agreement that are not resolved in accordance with
the provisions of Section 9.1 shall be finally settled under the ICC Rules by
binding arbitration conducted in the English language and held in London,
England before a panel of three (3) arbitrators. Notwithstanding anything to the
contrary in the ICC Rules, the following procedures shall apply for the
appointment of the three (3) arbitrators. Each Party shall appoint one (1)
arbitrator, obtain its appointee’s acceptance of such appointment and deliver
written notification of such appointment and acceptance to the other Party
within thirty (30) days from the date that the Dispute was submitted to
arbitration. If a Party fails to deliver written notification of its appointment
of an arbitrator and his/her acceptance within the time period provided in this
Section 9.2, then such arbitrator shall be appointed by the ICC in accordance
with the ICC Rules and be deemed a Party-appointed arbitrator for all purposes
hereof. The first two arbitrators so selected shall select the third arbitrator
(who shall act as chairman of the arbitration proceedings), prior to the
thirtieth (30th) day following the appointment of the second
Party-appointed arbitrator. If the Party-appointed arbitrators are unable to
select a neutral arbitrator, they shall jointly submit a list of four names (two
each) to the ICC, which shall select the third arbitrator from the list
submitted to it.

     (b) No arbitrator shall be a past
or present employee or agent of, or consultant or counsel to, a Party or any
Affiliate of a Party, unless such restriction has been waived in writing by the
other Party to the proceeding.

     (c) The substantive law governing
the Dispute shall be the laws of the State of New York.

     (d) The arbitrators shall have
the sole power and authority to determine the arbitrability of any Dispute
arising under or relating to this Agreement or the subject matter hereof.
Subject to any other relevant limitations set forth elsewhere herein, the
arbitrators will have the power to award any type of relief that is just and
appropriate in 

Execution Copy 

14

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the arbitrators’ discretion, including compensatory damages,
injunctive orders, orders for specific performances and declarations of
rights.

     (e) The arbitrators shall not
have power, however, to award punitive, consequential, exemplary or treble
damages or any other type of relief in the nature of a penalty, and the Parties
hereby expressly waive any right they might otherwise have to such relief. THE
PARTIES HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY WITH RESPECT TO ANY DISPUTE
ARISING OUT OF OR RELATING TO THIS AGREEMENT.

Section 9.3 Finality; Enforcement. Any decision or award
of a majority of an arbitral panel, as applicable, shall be final and binding
upon the Parties. Each Party agrees that the arbitral award may be enforced
against it or its assets wherever they may be found and that a judgment upon the
arbitral award may be entered in any court having jurisdiction thereof. The
Parties hereby waive any right to appeal or to review of the decision or the
award of an arbitral panel by any court or tribunal and also waive any
objections to the enforcement of such decision or award.

Section 9.4 Costs. The costs of arbitration shall be
paid in accordance with the decision of the arbitral panel pursuant to the ICC
Rules.

Section 9.5 Continuing Performance Obligations. The
existence of any Dispute or the pendency of the Dispute resolution procedures
set forth herein will not relieve or excuse a Party from its ongoing duties and
obligations under this Agreement, and the Parties shall nevertheless proceed
with the performance of this Agreement in accordance with the terms hereof.

ARTICLE 10 – TERMINATION

Section 10.1 Termination Rights. This Agreement may be
terminated by either Party in the case of the failure of the other Party to
fulfill any of its material obligations hereunder (a “Default”) on ninety (90)
days’ prior written notice to the Party in Default, such notice to specify the
performance failure of such Party.

Section 10.2 Cure Rights. Notwithstanding anything
contained herein to the contrary, a Party that is in Default shall be entitled
to cure such Default by satisfying its performance obligation prior to the end
of such ninety (90) day period. Furthermore, if such Party is diligently
proceeding to cure such Default but such cure cannot be accomplished within such
ninety (90) day period, the Party in Default shall be given up to an additional
sixty (60) days to cure the Default so long as such Party continues to
diligently pursue curing the Default. If the Default is cured by the Party that
is in Default prior to the end of the cure period, then the notice of
termination shall be null and void. If a Party fails to cure a Default, then
this Agreement shall terminate on the date set forth in the notice of Default,
but in no event prior to ninety (90) days following the issuance of such notice
of Default.

Execution Copy 

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REDACTED. CONFIDENTIAL TREATMENT REQUESTED 

Section 10.3 Right to Retain the License.
Notwithstanding anything contained herein to the contrary, if Licensor is in
Default for a failure to perform any material obligation hereunder, American
shall retain all the license rights and other rights granted to American
hereunder, without any obligation to purchase any System through Licensor. In
such case, American shall place all Purchase Orders through AK.

Section 10.4 Termination by Licensor. If Licensor
terminates this Agreement based on a failure of American to fulfill any of its
material obligations hereunder, American shall not be relieved of the
limitations and restrictions imposed by this Agreement upon the use or
dissemination of the Technology and/or the Systems which is not at such time in
the public domain; and that for installed Systems, American shall retain all the
license rights and other rights granted to American hereunder.

ARTICLE 11 – GENERAL PROVISIONS

Section 11.1 Expenses. Except as is otherwise expressly
provided in this Agreement, each Party will bear its respective expenses
incurred in connection with the preparation, execution and performance of this
Agreement.

Section 11.2 Confidentiality. The Parties agree to
maintain the confidentiality of this Agreement and the terms and conditions
hereof. Any public announcements or similar publicity with respect to this
Agreement shall be issued at such time and in such manner as the parties shall
jointly determine. Notwithstanding the foregoing, each Party (and its
Affiliates) shall have the right to make all such disclosures as required by
applicable law or by any governmental body, including any stock exchange or
securities market to whose regulations or disclosure requirements a Party is
subject, without the consent of the other Party hereto; provided,
however, that in the event of any such required disclosure, the
disclosing Party (and its Affiliates), to the extent reasonably practicable,
shall provide the other Party with advance notice of any such disclosure and an
opportunity to comment thereon. The parties acknowledge that it is their intent
to limit, to the fullest extent possible, any publicity regarding their joint
cooperation during the Interim Period, it being recognized, however, that
American will need to contact public officials in connection with securing
permits or other approvals for the Demonstration Plant. In such regard, American
will undertake to obtain assurances of confidentiality from such public
officials, but disclosures may nevertheless result.

Section 11.3 Notices. All notices, consents, waivers and
other communications under this Agreement must be in writing and will be deemed
to have been duly given when (i) delivered by hand (with written confirmation of
receipt), (ii) sent by telecopier (with written confirmation of receipt),
provided that a copy is mailed by registered mail, return receipt requested, or
(iii) when received by the addressee, if sent by a nationally recognized
overnight delivery service (receipt requested), in each case to the appropriate
addresses and telecopier numbers set forth below (or to such other addresses and
telecopier numbers as a party may designate by notice to the other parties):

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REDACTED. CONFIDENTIAL TREATMENT REQUESTED 

Licensor:

AlphaKat Global Energy GmbH

Schulstrasse 8 
96155 Buttenheim, Germany 
Attention: Chief Executive
Officer 
Facsimile: +49-9545-950325

American:

945 Ellington Lane 
Pasadena, CA
91105, USA 
Attention: Bruce I. Drucker 
Facsimile: +1-815-361-9052

Section 11.4 Waiver. Neither the failure nor any delay
by either Party in exercising any right, power or privilege under this Agreement
shall operate as a waiver of such right, power or privilege, and no single or
partial exercise of any such right, power or privilege will preclude any other
or further exercise of such right, power or privilege or the exercise of any
other right, power or privilege. To the maximum extent permitted by applicable
law, (i) no claim or right arising out of this Agreement can be discharged by
one Party, in whole or in part, by a waiver or renunciation of the claim or
right unless in a writing signed by the other Party, (ii) no waiver that may be
given by a Party will be applicable except in the specific instance for which it
is given and (iii) no notice to or demand on one Party will be deemed to be a
waiver of any obligation of such Party or of the right of the Party giving such
notice or demand to take further action without notice or demand as provided in
this Agreement.

Section 11.5 Entire Agreement and Modification. This
Agreement supersedes all prior agreements between the Parties with respect to
its subject matter and constitutes a complete and exclusive statement of the
terms of the agreement between the Parties with respect to its subject matter.
This Agreement may not be amended except by a written agreement executed by the
Party to be charged with the amendment.

Section 11.6 Assignment. Neither Party may assign its
rights under this Agreement, in whole or in part, without the prior written
consent of the other Party, which consent shall not be unreasonably withheld or
delayed, except that each Party may make an assignment of this Agreement to an
Affiliate (so long as such Party remains liable for its obligations hereunder
following such assignment) and each Party may make a collateral assignment of
its rights hereunder to one or more lender(s) in connection with the financing
being arranged by such Party. In the case of a collateral assignment by one
Party to one or more lenders, the other Party shall, if requested to so,
negotiate the terms of a consent to assignment in good faith and enter into such
consent without delay. Notwithstanding the foregoing, Licensor may withhold its
consent in the case of a proposed assignment to any Person that is a Competitor
of Licensor.

Execution Copy 

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REDACTED. CONFIDENTIAL TREATMENT REQUESTED 

Section 11.7 Severability. If any provision of this
Agreement is held to be invalid, illegal or unenforceable by any court of
competent jurisdiction, the other provisions of this Agreement will remain in
full force and effect. Any provision of this Agreement held invalid, illegal or
unenforceable only in part or degree will remain in full force and effect to the
extent not held invalid, illegal or unenforceable.

Section 11.8 Governing Law. This Agreement will be
governed by, and construed in accordance with the laws of, the State of New York
without regard to its conflicts of law (other than Sections 5-1401 and 5-1402 of
the New York General Obligations Law).

Section 11.9 No Power of Representation. Neither Party
shall have the authority or right under this Agreement to, nor shall either
Party hold itself out as having the authority or right under this Agreement to,
(i) assume, create or undertake any obligation of any kind whatsoever, express
or implied, on behalf of or in the name of the other Party without the express
prior written consent of such other Party or (ii) accept service of any legal
process addressed to or intended for such other Party.

Section 11.10 No Partnership. Nothing in this Agreement
shall be construed as creating a partnership, association, joint venture or any
other legal entity between the Parties (including their Affiliates), nor a
fiduciary relationship between the Parties (including their Affiliates).

Section 11.11 No Third Party Beneficiaries. No provision
of this Agreement is intended or is to be construed to confer upon any Person,
other than the Parties and their respective Affiliates and successors and
permitted assigns, any rights or remedies under or by reason of this Agreement,
except for all Purchasers and Third Party Purchasers to the extent provided for
in Section 2.5.

Section 11.12 Counterparts and Facsimile Signatures.
This Agreement, and any other agreement, instrument, certificate of other
documents desirable to be executed and delivered in order to consummate the
Contemplated Transactions, may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement and all of which,
when taken together, will be deemed to constitute one and the same agreement.
Any such document may be executed by facsimile signature. The signatures below
of American and Licensor also serve to state their agreement and position as
parties to the “Acknowledgement and Agreement” which is being signed below by
Dr. Christian Koch and AK.

[Signature page follows]

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REDACTED. CONFIDENTIAL TREATMENT REQUESTED 

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

	 	ALPHAKAT - GLOBAL ENERGY GMBH 
	 	 	  
	 	 	  
	 	 	  
	 	By:	 /s/ Yossi Raz 
	 	 	Yossi Raz, Chief Executive Officer 
	 	 	Date: February 6, 2008 
	 	 	  
	 	 	  
	 	 	AMERICAN RENEWABLE 
	 	 	DIESEL, LLC 
	 	 	  
	 	 	  
	 	 	  
	 	By:	 /s/ Bruce I. Drucker 
	 	 	Bruce I. Drucker, Chief Executive Officer 
	 	 	Date: February 6, 2008 

Acknowledgment and Agreement:

Dr. Christian Koch, in his capacity as President of AK and his
individual capacity hereby, as signed below, acknowledges he has reviewed this
License Agreement in its entirety and agrees to all of the terms hereof and
confirms that the representations and warranties that are made in Section 8.2
are true and correct.

AK owns or has sufficient rights, and has granted Licensor
sufficient rights, to allow Covanta to exercise the rights granted under the
License Agreement. If for any reason the rights granted to Covanta by Licensor
are not sufficient to allow Covanta to exercise its rights under the License
Agreement, Dr. Christian Koch or AK shall convey or cause to be conveyed any and
all further rights needed by AK or Licensor to permit Covanta to exercise such
rights under the License Agreement. If the rights granted or to be granted to
Licensor are terminated for any reason or if Licensor ceases to exist, AK shall
enter into a substantially similar form of license agreement with American, such
new license agreement to preserve the Full Rights and/or the Qualified Rights
granted to American in the Territory. Dr. Christian Koch agrees that he will
cause AK to perform its obligations hereunder.

All capitalized terms herein have the meanings given in the
License Agreement.

By: /s/ Dr. Christian Koch

       Dr. Christian Koch

       Date: February 6, 2008

Execution Copy 

19

REDACTED. CONFIDENTIAL TREATMENT REQUESTED 

EXHIBIT 1 – COVANTA LICENSE AGREEMENT

 

 

 

 

 

 

 

Execution Copy 

20

REDACTED. CONFIDENTIAL TREATMENT REQUESTED 

EXHIBIT 2 – RIGHTS AGREEMENTS

Terms of Agreement dated May 2, 2007 
Shareholders’
Agreement dated July 10, 2007
Articles of Association of Licensee dated
November 14, 2007 and November 22, 2007

Execution Copy

 21

REDACTED. CONFIDENTIAL TREATMENT REQUESTED 

EXHIBIT 3 – LIST OF PATENTS

 

 

 

 

Execution Copy

 22

REDACTED. CONFIDENTIAL TREATMENT REQUESTEDFiled by Automated Filing Services Inc. (604) 609-0244 - Uranium Energy Corp. - Exhibit 4.1

 

		AMEX Symbol – UEC 
Frankfurt Symbol
      – U6Z 
Berlin Symbol – U6Z 

December 18, 2007

     Delivered and/or via e-mail

To the following placement agent and delivery instructions
for each of the below Private Placement Shareholders of the Company:

	Sprott Securities Inc. 
	Suite 2750, South Tower, Royal Bank Plaza 
	200 Bay Street, Toronto, Ontario, Canada, M5J 2J2
    
	Attention: 	Ms. Eileen Conboy

And to each of the following Private Placement
Shareholders of the Company who purchased through the above placement
agent:

	Sprott Securities Inc. 	 	Royal Trust Corporation of Canada
    
	Suite 2750, South Tower, Royal Bank Plaza,
	 	in trust for account 110-455-158
    
	200 Bay Street, Toronto, Ontario, Canada, 	 	Royal Bank Plaza, South Tower, 200 
	M5J 2J2 	 	Bay Street, SL Level, Toronto, Ontario, 
	  	 	Canada, M5J 2J5 
	  	 	  
	Royal Trust Corporation of Canada
      in 	 	Royal Trust Corporation of Canada
    
	trust for account 110-455-161
    	 	in trust for account 110-455-029
    
	Royal Bank Plaza, South Tower, 200 Bay 	 	South Tower, Royal Bank Plaza, 200 
	Street, SL Level, Toronto, Ontario, M5J 2J5
    	 	Bay Street, SL Level, Toronto, Ontario, 
	  	 	Canada, M5J 2J5 
	  	 	  
	Royal Trust Corporation of Canada
      in 	 	Royal Trust Corporation of Canada
    
	trust for account 110-455-194
    	 	in trust for account 111-440-001
    
	South Tower, Royal Bank Plaza, 200 Bay 	 	South Tower, Royal Bank Plaza, 200 
	Street, SL Level, Toronto, Ontario, Canada,
    	 	Bay Street, SL Level, Toronto, Ontario, 
	M5J 2J5 	 	Canada, M5J 2J5 
	  	 	  
	  	 	  
	Royal Trust Corporation of Canada
      in 	 	Royal Trust Corporation of Canada
    
	trust for account 110-455-130
    	 	in trust for account 086-220-001
    
	South Tower, Royal Bank Plaza, 200 Bay 	 	South Tower, Royal Bank Plaza, 200 
	Street, SL Level, Toronto, Ontario, Canada,
    	 	Bay Street, SL Level, Toronto, Ontario, 
	M5J 2J5 	 	Canada, M5J 2J5 

Dear Sirs/Mesdames:

Re:

Uranium Energy Corporation (the
“Company”)
Private Placement on May 11, 2006 –
1,500,000 Units at U.S. $2.00 per Unit
Confirmation of the further
Extension of your Warrant Exercise Period

Page 2

     We are writing in furtherance of
our previous letter of March 27, 2007 in this matter which therein reported upon
the Company’s reporting issuer status in Canada and which therein extended your
existing warrant exercise period to September 5, 2007.

Extension of your Warrant Exercise Period

     In this respect we confirm that
we are now writing in connection with the Company’s recent determination to now
further extend the existing “Warrant Exercise Period” previously provided to you
in connection with your May 11, 2006 closing (the “Closing”) of your
equity private placement subscription (the “Private Placement”) with the
Company, and through your associated firm and placement agent, Sprott Asset
Management Inc. (the original “Subscriber” therein), from September 5,
2007 to March 31, 2008 in this instance (the
“Extension of your Warrant Exercise Period” herein).

     Particulars of the Private
Placement and the resulting Warrant Exercise Period 

     In this regard we confirm by way of
necessary background for, we trust, your ease of reference, that, in conjunction
with the Closing of the Private Placement with the Subscriber, the Company
therein issued from treasury an aggregate of 1,500,000 units of the Company
(each a “Unit”), at a subscription price of U.S. $2.00 per Unit, to each
of the resulting and above-referenced registered “Shareholders” of the
Company; as directed by the Subscriber to the Company; and in accordance with
the terms and conditions of the Subscriber’s requisite “$2.00 Unit Private
Placement Subscription Agreement” with the Company. We also confirm that each
such Unit under the Private Placement was comprised of one common share together
with one-half of one non-transferable common stock share purchase warrant (each
a “Warrant”) in the capital of the Company; and that each such resulting
Warrant then entitled a Shareholder to purchase one additional common share of
the Company (each a “Warrant Share”) for the period commencing upon the
date of issuance of the within Units by the Company; that being on May 11, 2006;
and ending at 5:00 p.m. (Austin, Texas, U.S.A., time) on the day which was the
earlier of (i) 12 months from the date of issuance of the within Units by the
Company; that being on the Closing date of May 11, 2006; and (ii) six months
from the effective date of the Company’s proposed registration statement
pursuant to which the Warrant Shares underlying the Warrants were to be and have
now been registered for resale under the United States Securities Act of
1933, as amended (the “U.S. Act” and the “Registration
Statement”; and the earlier such time period being the “Warrant Exercise
Period” herein), at an exercise price of U.S. $2.50 per Warrant Share during
the Warrant Exercise Period.

     In this regard we also confirm,
as previously communicated by the Company to the Subscriber and all Shareholders
by way of instructional letter dated October 20, 2006, that a Registration
Statement covering the securities underlying the Subscription Agreement for each
Shareholder was filed by the Company with the United States Securities and
Exchange Commission on Form SB-2 in late September of 2006 and became effective
on October 20, 2006. As a result, we confirm that, in accordance with the
original Warrant Exercise Period underlying each Shareholder’s requisite
Warrants, the Warrants would have ordinarily been exercisable until only April
20, 2007 in their original instance.

Registration Rights continue for your Securities

Page 3

     In connection with foregoing
Extension of your Warrant Exercise Period, therefore, as a result of the
Company’s recent discussions with the Subscriber and due, in large part, to the
continued patience and ongoing support of the Subscriber and the Shareholders to
the Company, we also confirm that the Company has hereby determined to provide
each Shareholder with the following ongoing piggy-back registration rights (the
“Registration Rights”) in connection with your extended Warrants and
their underlying Warrant Shares (collectively, the “Securities”) going
forward:

	 	(a) 	
      if the Company proposes to register or list any of its
      shares of common stock under applicable laws in the United States or
      otherwise, either for its own account or for the account of any other
      stockholder of the Company, and during any period in which the Shareholder
      still owns the Securities which have any resale restrictions applicable
      thereto, the Company will give written notice thereof to the Shareholder
      at least 10 calendar days prior to the commencement of the registration or
      listing process and shall include the Securities in such registration or
      listing (in each instance a “Registration”);

	 	 	 
	 	(b) 	
      should the Company propose any such Registration in the
      United States the Company shall file a Registration Statement under the
      U.S. Act with the U.S. Securities and Exchange Commission (the
      “SEC”) covering the proposed Registration and disposition of all
      Securities (including any shares issued as a dividend or other
      distribution with respect to or in exchange for or in replacement of the
      shares issued to the Shareholder hereunder) to be acquired by the
      Shareholder;

	 	 	 
	 	(c) 	
      upon the filing of said Registration Statement with the
      SEC, if any, the Company shall use its reasonable commercial efforts to
      obtain an effective date from the SEC for the Registration Statement
      within four months from the initial filing thereof;

	 	 	 
	 	(d) 	
      upon the receipt by the Company from the SEC of an
      effective date for said Registration Statement, the Company shall maintain
      the effectiveness of the Registration Statement for a period of up to 12
      months from the effective date, including the filing of such amendments
      and supplements to the Registration Statement and the prospectus used in
      connection with such Registration Statement as may be necessary to comply
      with the provisions of the U.S. Act;

	 	 	 
	 	(e) 	
      the Company will furnish the Shareholder with such number
      of prospectuses and other documents incident thereto, including
      supplements and amendments, as the Shareholder may reasonably request;
      and

	 	 	 
	 	(f) 	
      the Company will list all Securities covered by the
      Registration Statement on any securities exchange or quotation system on
      which the Company’s securities are then listed.

     In this respect we finally
confirm that the Company expects to be in a position within the next 30 to 60
calendar days to file a Registration Statement with the SEC such

Page 4

that each Shareholder’s requisite Registration Rights hereunder
are expected to be honoured in their entirety in the near future.

     We trust that each of the
foregoing is both clear and satisfactory in connection with the Company’s within
Extension of your Warrant Exercise Period together with each Shareholder’s
Registration Rights commensurate with the same, however, should the Subscriber
or any Shareholder have any questions or concerns respecting any of the same
please do not hesitate to immediately contact the writer at any time.

Yours very truly,

/s/ Amir Adnani

Amir Adnani, President and CEO
Uranium
Energy Corp

	ec. 	Counsel for Sprott Securities Inc.

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