Document:

EX10-25

Exhibit 10.25

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR ANY STATE SECURITIES LAWS, AND ARE PROPOSED TO BE ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT.   SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.

 

 

 

 

URANIUM ENERGY CORP.

 

 

REGISTRATION RIGHTS AGREEMENT

 

u

 

 

 

 

 

Dated as at July u
, 2008

Between Uranium Energy Corp. and the Subscriber

__________

REGISTRATION RIGHTS AGREEMENT

               This Registration Rights Agreement (this "Agreement") is made and entered into as of July u
, 2008, between Uranium Energy Corp., a corporation incorporated under the laws of the State of Nevada (the "Corporation"), and the undersigned purchaser (the "Subscriber") of certain Units (as described herein) of the Corporation in accordance with the terms and conditions of a certain Subscription Agreements between the Corporation and the Subscriber (the "Subscription Agreement").

               WHEREAS, the parties have agreed to enter into this Agreement in connection with, and as a condition to the Closing (as defined herein) under, the Subscription Agreement; and

               WHEREAS, the Corporation has agreed, upon the terms and subject to the conditions set forth in the Subscription Agreement, to issue and sell to the Subscriber the number of Units (as described herein) set forth therein; 

               NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Corporation agrees with the Subscriber, and for the benefit of the Subscriber from time to time of the Units, the Warrant Shares (as described herein) and the Liquidated Damages Shares (as described herein), to provide certain registration rights under the 1933 Act (as defined herein), and applicable state securities laws, and the Corporation further agrees with the Subscriber as follows:

1.          Definitions

In this Agreement, unless the context otherwise requires, the following terms have the meanings indicated:
(a)          "Agreement" has the meaning set forth in the preamble; 

(b)          "Business Day" means any day other than Saturday, Sunday or any other day on which commercial banks in Vancouver, British Columbia, Canada, are authorized or required by law to remain closed;

(c)          "Claims" has the meaning set forth in Section 6(a);

(d)          "Closing" means the closing of the purchase of the Units by the Subscriber; 

(e)          "Closing Date" means July u
, 2008, or such other date as the Corporation may agree;

(f)          "Common Shares" means the shares of common stock of the Corporation, par value US$0.001 per share. 

(g)          "Corporation" has the meaning set forth in the preamble;

(h)          "Effective Date" means the date a Registration Statement has been declared effective by the SEC;

(i)          "Event" has the meaning set forth in Section 2(f);

(j)          "Filing Deadline" means: (i) with respect to the initial Registration Statement required to be filed with the SEC pursuant to Section 2(a)(i), the date that is 30 days from the Closing Date; and (ii) with respect to any additional Registration Statements required to be filed with the SEC pursuant to Section 2(a)(ii), the 30th day following the date on which the Corporation first knows, or reasonably should have known, that such additional Registration Statement is required under such Section, which, in the case of the issuance of Liquidated Damages Warrants shall be the date of issuance of such Liquidated Damages Warrants;

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(k)          "Indemnified Damages" has the meaning set forth in Section 6(a);

(l)          "Indemnified Party" has the meaning set forth in Section 6(b);

(m)          "Indemnified Person" has the meaning set forth in Section 6(a);

(n)          "Inspectors" has the meaning set forth in Section 3(h);

(o)          "Investor" means a Subscriber or any transferee or assignee thereof to whom a Subscriber assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a transferee or assignee assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9;

(p)          "Legal Counsel" has the meaning set forth in Section 2(d);

(q)          "Liquidated Damages Period" has the meaning set forth in Section 2(f);

(r)          "Liquidated Damages Warrants" means the transferable share purchase warrants, each whole of which entitles the holder thereof to acquire one Warrant Share at an exercise price of US$3.10 per Warrant Share, expiring at 5:00 p.m. (Vancouver, British Columbia, time) on the date that is two years from the date the Liquidated Damages Warrant is issued, which Liquidated Damages Warrants are issuable to an Investor as liquidated damages upon the occurrence of any Event as described in Section 2(f) hereof;

(s)          "Majority Investors" means the holders of a majority in interest of Registrable Securities on a fully diluted basis;

(t)          "Person" means any individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind;

(u)          "Purchased Securities" means the Units purchased by the Subscribers pursuant to the Subscription Agreement or, the securities underlying such Units that are acquired by an Investor pursuant to Section 9, as the case may be;

(v)          "Records" has the meaning set forth in Section 3(h);

(w)          "register," "registered," and "registration" refer to a registration effected by preparing and filing one or more Registration Statements in compliance with the 1933 Act and pursuant to Rule 415 and the declaration or ordering of effectiveness of such Registration Statements by the SEC;

(x)          "Registrable Securities" means the Common Shares issued as part of the Units and the Warrant Shares issuable upon exercise of the Warrants and, if applicable, the Liquidated Damages Warrants;

(y)          "Registration Deadline" means: (i) with respect to the initial Registration Statement required to be filed with the SEC pursuant to Section 2(a)(i), 5:00 p.m. (Vancouver, British Columbia, time) on September 25, 2008; and (ii) with respect to any additional Registration Statements that may be required to be filed with the SEC pursuant to Section 2(a)(ii), the 60th day following the date on which the Corporation first knows, or reasonably should have known, that such additional Registration Statement is required under such Section, which, in the case of the issuance of Liquidated Damages Warrants shall be the date of issuance of such Liquidated Damages Warrants;

(z)          "Registration Period" has the meaning set forth in Section 3(a);

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(aa)       "Registration Statement" means a registration statement of the Corporation to be filed with the SEC, as amended and supplemented, in order to register resales of the Registrable Securities, from time to time, by the Investors;

(ab)       "Rule 144" has the meaning set forth in Section 8;

(ac)       "Rule 415" means Rule 415 under the 1933 Act or any successor rule providing for offering securities on a continuous or delayed basis;

(ad)       "SEC" means the United States Securities and Exchange Commission;

(ae)       "Securities Laws" means all of the applicable federal and state securities laws and regulations of the United States, including without limitation the 1933 Act, the 1934 Act and the respective rules and regulations of the SEC thereunder;

(af)       "Subscriber" has the meaning set forth in the preamble;

(ag)       "Subscription Agreement" has the meaning set forth in the preamble;

(ah)       "Suspension Notice" has the meaning set forth in Section 4(b);

(ai)       "Trading Day" means: (i) any day on which the Common Shares are listed or quoted, and traded, on the American Stock Exchange; or (ii) if the Common Shares are not then listed or quoted, and traded, on the American Stock Exchange, then any Business Day;

(aj)       "Transaction Documents" means this Agreement, the Subscription Agreement and the instruments referenced therein;

(ak)       "Transfer Agent" means the transfer agent (including any co-transfer agent) of the Corporation with respect to the Common Shares;

(al)       "Unit" means one Common Share and one-half of one Warrant to purchase one additional Common Share of the Corporation, each Unit having a purchase price of US$2.40;

(am)       "Violations" has the meaning set forth in Section 6(a);

(an)       "Warrants" means the transferable share purchase warrants issued as part of the Units, each of which whole Warrant being exercisable to purchase one Warrant Share at a price of US$3.10 per Warrant Share, expiring at 5:00 p.m. (Vancouver, British Columbia, time) on the date that is two years from the Closing Date;

(ao)       "Warrant Shares" means the Common Shares issuable upon exercise of the Warrants or, if applicable, the Liquidated Damages Warrants;

(ap)       "1933 Act" means the United States Securities Act of 1933, as amended, and the rules and regulations thereunder; and

(aq)       "1934 Act" means the United States Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

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2.          Registration
(a)
(i)         Initial Registration.  The Corporation shall use its reasonable best efforts to prepare and file with the SEC by the applicable Filing Deadline the Registration Statement on Form S-1 or Form S-3 covering the resale, from time to time, of all of the Registrable Securities other than the Warrant Shares issuable upon exercise of the Liquidated Damages Warrants.

(ii)        Subsequent Registrations. The Corporation shall use its reasonable best efforts to prepare and file with the SEC by the applicable Filing Deadline a Registration Statement on Form S-1 or Form S-3 covering the resale, from time to time, of all of the Registrable Securities relating to the issuance by the Corporation of any Liquidated Damages Warrants.

(b)         Neither the Corporation nor any affiliate thereof shall identify any Investor as an underwriter in any public disclosure or filing with the SEC unless required by the SEC, and any Investor being deemed an underwriter by the SEC shall not relieve the Corporation of any obligations it has under the Transaction Documents.  If the Corporation is advised by the SEC that a Registration Statement may not become effective without the Corporation identifying an Investor as an underwriter therein, the Corporation shall consult with Legal Counsel and the Investors to determine whether to proceed with a request to have the Registration Statement declared effective.  In any event, the Corporation shall use its reasonable best efforts to advocate for the Registration Statement to be declared effective by the SEC without identifying an Investor as an underwriter therein, and shall permit Legal Counsel to participate in any communications with the SEC in respect thereof.  Each Registration Statement shall contain the "Plan of Distribution" section in substantially the form attached hereto as Exhibit A, subject to such amendments thereto as may be required by the SEC.  The Corporation shall use its reasonable best efforts to have each Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the applicable Registration Deadline.

(c)         Allocation of Registrable Securities.  The initial number of Registrable Securities included in any Registration Statement and any increase in the number of Registrable Securities included therein shall be allocated pro rata among the Investors based on the number of Registrable Securities held by each Investor at the time the Registration Statement covering such initial number of Registrable Securities or increase thereof is declared effective by the SEC. In the event that an Investor sells or otherwise transfers any of such Investor's Registrable Securities, each transferee shall be allocated a pro rata portion of the then remaining number of Registrable Securities included in such Registration Statement for such transferor.  Any Common Shares included in a Registration Statement which remain allocated to any Person which ceases to hold any Registrable Securities covered by such Registration Statement shall be allocated to the remaining Investors, pro rata based on the number of Registrable Securities then held by such Investors which are covered by such Registration Statement.  In no event shall the Corporation include any securities other than Registrable Securities in any Registration Statement without the prior written consent of the Majority Investors.

(d)         Legal Counsel.  The Majority Investors shall have the right to select one U.S. and one Canadian legal counsel to review and oversee any registration pursuant to this Section 2 (collectively, the "Legal Counsel").  The Corporation shall, and the Majority Investors shall cause their respective Legal Counsel to, reasonably cooperate with each other in performing the Corporation's obligations under this Agreement.

(e)         Sufficient Number of Shares Registered.  In the event the number of shares available under a Registration Statement filed pursuant to Section 2(a) is insufficient to cover all of the Registrable Securities required to be covered by such Registration Statement or an Investor's allocated portion of the Registrable Securities pursuant to Section 2(c), the Corporation shall amend the applicable Registration Statement, or file a new Registration Statement, or both, so as to cover the resale, from time to time, of such Registrable Securities, as soon as practicable, but in any event not later than 30 days after the necessity therefor arises.  The Corporation shall use its reasonable best efforts to cause such amendment and/or new Registration Statement to become effective as soon as practicable within 60 days following the filing thereof.

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(f)         Effect of Failure to Obtain and Maintain Effectiveness of Registration Statement.  Upon the occurrence of any Event (as defined below) and on each 30 calendar-day period (or partial period thereof) until the applicable Event is cured, as partial relief for the damages suffered therefrom by the Investor (which remedy shall not be exclusive of any other remedies available at law or in equity), the Corporation shall provide to the Investor, as liquidated damages and not as a penalty, such number of Liquidated Damages Warrants equal to one one-hundredth (1/100th) of a Liquidated Damages Warrant for each US$1.00 in aggregate funds paid by the Subscriber, or if applicable, the Investor, for the Purchased Securities (each such period, a "Liquidated Damages Period"); provided, however, that the maximum number of Common Shares issuable pursuant to the offering of Units contemplated by the Agency Agreement (including Warrant Shares issuable upon exercise of the Warrants, and if applicable, the Liquidated Damages Warrants), shall not exceed 19.9% of the Corporation's issued and outstanding share capital on the day immediately prior to the Closing Date unless shareholder approval for such issuance has been obtained, if  required, which the Corporation shall use its reasonable best efforts to obtain, if necessary.  The Corporation shall make such additional Liquidated Damages Warrant issuance to the Investor within 10 calendar days after the end of each Liquidated Damages Period.  For such purposes, each of the following shall constitute an "Event": (i) a Registration Statement is not declared effective by the SEC on or prior to the applicable Registration Deadline; (ii) subject to an allowable suspension pursuant to Section 3(p) below, after the Effective Date of a Registration Statement, an Investor is not permitted to sell Registrable Securities under such Registration Statement (or a subsequent Registration Statement filed in replacement thereof) for any reason for three consecutive Trading Days or five Trading Days in aggregate in any 12 month period; and (iii) the Corporation fails to have available a sufficient number of authorized but unissued and otherwise unreserved Common Shares available to issue all shares underlying the Warrants, and if applicable, the Liquidated Damages Warrants. 

3.          Related Obligations

At such time as the Corporation is obligated to file a Registration Statement with the SEC pursuant to Section 2(a) or 2(e), the Corporation will use its reasonable best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the Corporation shall have the following obligations:
(a)         The Corporation shall submit to the SEC, within two Business Days after the Corporation learns that no review of a particular Registration Statement will be made by the staff of the SEC, or that the staff has no further comments on a particular Registration Statement, a request for acceleration of effectiveness of such Registration Statement to a time and date not later than two Business Days after the submission of such request.  The Corporation shall use its reasonable best efforts to keep each Registration Statement effective at all times until the earlier of: (i) the second anniversary of the Closing Date, in the case of the initial Registration Statement required to be filed with the SEC pursuant to Section 2(a)(i), or the second anniversary of the date of issuance of the Liquidated Damages Warrants, in the case of any additional Registration Statement required to be filed with the SEC pursuant to Section 2(a)(ii); and (ii) the date on which the Investors shall have sold all of the Registrable Securities covered by such Registration Statement (the "Registration Period").  The Corporation shall ensure that each Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall 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 (in the case of prospectuses, in the light of the circumstances in which they were made) not misleading.

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 (b)         The Corporation shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to one or more Registration Statements and the prospectus used in connection with such Registration Statements, which prospectus is to be filed pursuant to Rule 424 promulgated under the 1933 Act as may be necessary to keep such Registration Statement effective at all times during the Registration Period, and, during such Registration Period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the Corporation covered by such Registration Statement.  In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 3(b)) by reason of the Corporation filing a report on Form 10-K, Form 10-Q, Form 8-K or any analogous report or similar filing under the 1934 Act, the Corporation shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements with the SEC on the same day on which the 1934 Act report is filed which created the requirement for the Corporation to amend or supplement such Registration Statement.

(c)         The Corporation shall permit Legal Counsel to review and comment upon: (i) mature drafts of a Registration Statement, and the final version of such Registration Statement if there have been any material changes thereto at least five Business Days prior to its filing with the SEC; (ii) all amendments and supplements to all Registration Statements (except for Reports on Form 10-K, Form 10-Q and Form 8-K and any similar or successor reports) within a reasonable number of days prior to their filing with the SEC; and (iii) not file any Registration Statement or amendment or supplement thereto in a form to which Legal Counsel reasonably objects; provided that Legal Counsel responds with substantially all comments within five Business Days of receipt of such documents.  The Corporation shall not submit a request for acceleration of the effectiveness of a Registration Statement or any amendment or supplement thereto without the prior approval of Legal Counsel, which consent shall not be unreasonably withheld.  The Corporation shall furnish to Legal Counsel, without charge: (i) copies of any correspondence from the SEC or the staff of the SEC to the Corporation or its representatives relating to any Registration Statement; (ii) promptly after the same is prepared and filed with the SEC, one copy of any Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested by an Investor, and all exhibits; and (iii) upon the effectiveness of any Registration Statement, one copy of the prospectus included in such Registration Statement and all amendments and supplements thereto.  The Corporation shall reasonably cooperate with Legal Counsel in performing the Corporation's obligations pursuant to this Section 3(c).

(d)         The Corporation shall furnish to each Investor whose Registrable Securities are included in any Registration Statement without charge: (i) upon the effectiveness of any Registration Statement, at the request of the Investor, up to ten copies of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as such Investor may reasonably request); and (ii) such other documents, including copies of any preliminary or final prospectus, as such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by such Investor.

(e)         The Corporation shall use its reasonable best efforts to: (i) register and qualify, unless an exemption from registration and qualification applies, the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities or "blue sky" laws of all applicable jurisdictions in the United States; (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period; (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period; and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Corporation shall not be required in connection therewith or as a condition thereto to (A) qualify to do business as a foreign corporation or dealer in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(e), (B) subject itself to general taxation in any such jurisdiction, or (C) file a general consent to service of process in any such jurisdiction.  The Corporation shall promptly notify Legal Counsel of the receipt by the Corporation of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or "blue sky" laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

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(f)         The Corporation shall notify Legal Counsel and each Investor in writing of the happening of any event, as promptly as practicable after becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), and, subject to Section 3(p), promptly prepare a supplement or amendment to such Registration Statement or file an appropriate document that is incorporated by reference to correct such untrue statement or omission, and deliver one copy (which may be in electronic form) of such supplement or amendment to Legal Counsel and, at the request of any Investor, up to ten copies to such Investor.  The Corporation shall also promptly notify Legal Counsel and each Investor in writing when a prospectus or any prospectus supplement or post-effective amendment has been filed (such notification shall be delivered by facsimile or electronic transmission on the same day as filing or effectiveness).  The Corporation shall also promptly notify Legal Counsel in writing of: (i) any request by the SEC for amendments or supplements to a Registration Statement, or related prospectus or related information; and (ii) of the Corporation's reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

(g)         The Corporation shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify Legal Counsel and each Investor who holds Registrable Securities being sold of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

(h)         The Corporation shall make available for inspection, during normal business hours on two Business Days notice, by: (i) Legal Counsel; and (ii) any firm of accountants or other agents retained by the Investors (collectively, the "Inspectors"), all pertinent financial and other records, and pertinent corporate documents and properties of the Corporation (collectively, the "Records"), as shall be reasonably deemed necessary by each Inspector, and cause the Corporation's officers, directors and employees to supply all information which any Inspector may reasonably request; provided, however, that each Inspector shall agree to hold in strict confidence and shall not make any disclosure (except to an Investor) or use of any Record other than public Records, unless (A) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the 1933 Act, (B) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or (C) the information in such Records has been made generally available to the public other than by disclosure in violation of this or any other agreement of which the Inspector has knowledge.  Each Investor agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Corporation and allow the Corporation, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential.  Nothing herein (or in any other confidentiality agreement between the Corporation and any Investor) shall be deemed to limit the Investors' ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations.

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(i)         The Corporation shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Corporation unless: (i) disclosure of such information is necessary to comply with Securities Laws; (ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement; (iii) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction; or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any other agreement.  The Corporation agrees that it shall, upon learning that disclosure of such information concerning an Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to such Investor and allow such Investor, at the Investor's expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information.

(j)         The Corporation shall use its reasonable best efforts to: (i) cause all of the Registrable Securities covered by a Registration Statement to be listed on each securities exchange on which securities of the same class or series issued by the Corporation are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange; and (ii) secure designation and quotation of all of the Registrable Securities covered by a Registration Statement on the AMEX.  The Corporation shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(j).

(k)         The Corporation shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, use its reasonable best efforts to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities sold pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the case may be, as the Investors may reasonably request and registered in such names as the Investors may request.

(l)         If reasonably requested by an Investor, the Corporation shall: (i) as soon as practicable incorporate in a prospectus supplement or post-effective amendment such information as Legal Counsel or an Investor reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) as soon as practicable make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) as soon as practicable, supplement or make amendments to any Registration Statement if reasonably requested by Legal Counsel or an Investor holding any Registrable Securities.

(m)         The Corporation shall use its reasonable best efforts to cause the Registrable Securities covered by a Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable Securities, and shall use its reasonable best efforts to comply with all applicable rules and regulations of the SEC in connection with any registration hereunder.

(n)         The Corporation shall make generally available to its security holders as soon as practical, but not later than 90 days after the close of the period covered thereby, an earning statement (in form complying with, and in the manner provided by, the provisions of Rule 158 under the 1933 Act) covering a 12-month period beginning not later than the first day of the Corporation's fiscal quarter next following the Effective Date of a Registration Statement.

(o)         Within two Business Days after a Registration Statement which covers Registrable Securities is ordered effective by the SEC, the Corporation shall deliver, and shall cause legal counsel for the Corporation to deliver, to the Transfer Agent for such Registrable Securities (with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation that such Registration Statement has been declared effective by the SEC.

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(p)         Notwithstanding anything in this Agreement to the contrary, after 20 consecutive Trading Days of continuous effectiveness of the initial Registration Statement filed and declared effective pursuant to this Agreement, the Corporation may, by written notice to Legal Counsel and the Investors, suspend sales under a Registration Statement after the Effective Date thereof and/or require that such Investors immediately cease the sale of Common Shares pursuant thereto and/or defer the filing of any subsequent Registration Statement if: (i) the Corporation is in possession of material non-public information relating to a material merger, acquisition or sale or similar transaction; (ii) the board of directors of the Corporation determines in good faith, by appropriate resolutions, that, as a result of such activity, (A) it would be materially detrimental to the Corporation (other than as relating solely to the price of the Common Shares) to file a Registration Statement at such time and (B) it is in the best interests of the Corporation to defer proceeding with such registration at such time; and (iii) in the opinion of legal counsel for the Corporation sales under the Registration Statement are required to be suspended.  Upon receipt of such notice, each Investor shall immediately discontinue any sales of Registrable Securities pursuant to such registration until such Investor has been advised that the Corporation has filed a prospectus supplement or amended prospectus with the SEC or until such Investor is advised in writing by the Corporation that the then-current prospectus may be used and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in such prospectus.  In no event, however, shall this right be exercised to suspend sales beyond the period during which (in the good faith determination of the Corporation's board of directors) the failure to require such suspension would be materially detrimental to the Corporation.  The Corporation's rights under this Section 3(p) may be exercised not more than one time, nor for a period of more than 20 days, in any 12-month period.  Immediately after the end of any suspension period under this Section 3(p), the Corporation shall take all necessary actions (including filing any required supplemental prospectus) to restore the effectiveness of the applicable Registration Statement and the ability of the Investors to publicly resell their Registrable Securities pursuant to such effective Registration Statement.  Notwithstanding anything to the contrary, the Corporation shall cause its Transfer Agent to deliver unlegended Common Shares to a transferee of an Investor in connection with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale, and delivered a copy of the prospectus included as part of the applicable Registration Statement, if required, prior to the Investor's receipt of the notice of a suspension period and for which the Investor has not yet settled.

4.          Obligations of the Investors
(a)         At least five Business Days prior to the first anticipated filing date of a Registration Statement, the Corporation shall notify Legal Counsel and each Investor in writing of the information the Corporation requires from each such Investor if such Investor elects to have any of such Investor's Registrable Securities included in such Registration Statement.  It shall be a condition precedent to the obligations of the Corporation to complete the registration pursuant to this Agreement with respect to the Registrable Securities of a particular Investor and any penalty or default resulting from such failure, that such Investor shall furnish to the Corporation such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect the effectiveness of the registration of such Registrable Securities.

(b)        Each Investor agrees that, upon receipt of any notice from the Corporation of the happening of any event of the kind described in Section 3(g), the first sentence of Section 3(f) or a suspension period under Section 3(p) (a "Suspension Notice"), such Investor will: (i) immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement(s) covering such Registrable Securities until such Investor's receipt of notice of the filing of any prospectus supplement or post-effective amendment contemplated by Section 3(g) or the first sentence of Section 3(f) or receipt of notice that no supplement or amendment is required; and (ii) if so requested by the Corporation, deliver to the Corporation or destroy all copies of the prospectus covering the Registrable Securities in its possession at the time of receipt of such Suspension Notice.  Notwithstanding anything to the contrary, the Corporation shall cause its Transfer Agent to deliver unlegended Common Shares to a transferee of an Investor in connection with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale and delivered a copy of the applicable prospectus prior to the Investor's receipt of a notice from the Corporation of the happening of any event of the kind described in Section 3(g) or the first sentence of Section 3(f) and for which the Investor has not yet settled.

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(c)         Each Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act in connection with sales of Registrable Securities pursuant to the Registration Statement.

5.          Expenses of Registration

All  reasonable expenses, other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements of legal counsel for the Corporation shall be paid by the Corporation.  The Corporation shall also reimburse the Investors for the reasonable fees and disbursements of Legal Counsel in connection with registration, filing or qualification pursuant to Sections 2 and 3 of this Agreement.

6.          Indemnification

In the event any Registrable Securities are included in a Registration Statement under this Agreement:
(a)         To the fullest extent permitted by law, the Corporation will, and hereby does, indemnify, hold harmless and defend each Investor, the directors, officers, members, partners, employees, agents, representatives of, and each Person, if any, who controls any Investor within the meaning of the 1933 Act or the 1934 Act (each an "Indemnified Person"), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys' fees, amounts paid in settlement or expenses, joint or several (collectively, the "Claims"), incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto (collectively, the "Indemnified Damages"), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other "blue sky" laws of any jurisdiction in which Registrable Securities are offered, or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading; (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus if used prior to the Effective Date of such Registration Statement, or contained in the final prospectus (as amended or supplemented, if the Corporation files any amendment thereof or supplement thereto with the SEC, as applicable) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in the light of the circumstances under which the statements therein were made, not misleading; (iii) any violation or alleged violation by the Corporation of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state, provincial or territorial securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement; or (iv) any violation of this Agreement by the Corporation (the matters in the foregoing clauses (i) through (iv) being, collectively, the "Violations").  Subject to Section 6(c), the Corporation shall reimburse the Indemnified Persons, promptly as such expenses are incurred and are due and payable, for any reasonable and documented legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.

- 11 -
Notwithstanding anything to the contrary contained herein, the indemnity agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Corporation by such Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the Corporation pursuant to Section 3(d); (ii) with respect to any preliminary prospectus, shall not inure to the benefit of any such Person from whom the Person asserting any such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit of any Person controlling such Person) if the untrue statement or omission of material fact contained in the preliminary prospectus was corrected in the prospectus, as then amended or supplemented, if such prospectus was timely made available by the Corporation pursuant to Section 3(d); (iii) shall not be available to the extent such Claim is based on a failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Corporation, including a corrected prospectus, if such prospectus or corrected prospectus was timely made available by the Corporation pursuant to Section 3(d); and (iv) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Corporation, which consent shall not be unreasonably withheld or delayed.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.

(b)         In connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally and not jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Corporation, each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls the Corporation within the meaning of the 1933 Act or the 1934 Act (each, an "Indemnified Party"), against any Claim or Indemnified Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information furnished to the Corporation by such Investor expressly for use in connection with such Registration Statement; and, subject to Section 6(c), such Investor will reimburse any reasonable and documented legal or other reasonable and documented expenses incurred by an Indemnified Party in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of such Investor, which consent shall not be unreasonably withheld or delayed; provided, further, however, that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.  Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(b) with respect to any preliminary prospectus shall not inure to the benefit of any Indemnified Party if the untrue statement or omission of material fact contained in the preliminary prospectus was corrected on a timely basis in the prospectus, as then amended or supplemented.

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(c)         Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the reasonable and documented fees and expenses of not more than one counsel for such Indemnified Person or Indemnified Party to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding.  The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or Claim.  The indemnifying party shall keep the Indemnified Party or Indemnified Person reasonably apprised at all times as to the status of the defense or any settlement negotiations with respect thereto.  No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent.  No indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability in respect to such Claim or litigation.  Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made.  The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.

(d)         The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or Indemnified Damages are incurred.

(e)         The indemnity agreements contained herein shall be in addition to: (i) any cause of action or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or others; and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

7.          Contribution

To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities pursuant to such Registration Statement.

8.          Reports Under the 1934 Act

With a view to making available to the Investors the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the SEC that may at any time permit the Investors to sell securities of the Corporation to the public without registration ("Rule 144"), the Corporation agrees to:

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(a)         make and keep public information available, as those terms are understood and defined in Rule 144;

(b)         file with the SEC in a timely manner all reports and other documents required of the Corporation under the 1933 Act and the 1934 Act so long as the Corporation remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and

(c)         furnish to each Investor so long as such Investor owns Registrable Securities, promptly upon request such information not available on EDGAR as may be reasonably requested by each Investor to permit the Investors to sell such securities pursuant to Rule 144 without registration.

9.           Assignment of Registration Rights

The rights under this Agreement shall be automatically assignable by the Investors to any transferee in a private transaction of all or any portion of such Investor's Common Shares, Warrants, Liquidated Damages Warrants or Warrant Shares, pursuant to the terms thereof, if: (a) the Investor agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Corporation within a reasonable time after such assignment; (b) the Corporation is furnished with written notice of (i) the name and address of such transferee or assignee and (ii) the securities with respect to which such registration rights are being transferred or assigned; (c) at or before the time the Corporation receives the written notice contemplated by clause (b) of this sentence the transferee or assignee agrees in writing with the Corporation to be bound by all of the provisions contained herein; and (d) such transfer shall have been made in accordance with the applicable requirements of the Subscription Agreements.

10.         Amendment of Registration Rights

Provisions of this Agreement may be amended and the observance thereof maybe waived (either generally or in a particular instance and either retroactively or prospectively), only with the prior written consent of the Corporation and the Majority Investors.  Any amendment or waiver effected in accordance with this Section 10 shall be binding upon each Investor and the Corporation.  No such amendment shall be effective to the extent that it applies to less than all of the Investors.  No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

11.         Miscellaneous
(a)         A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable Securities.  If the Corporation receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable Securities, the Corporation shall act upon the basis of instructions, notice or election received from the such record owner of such Registrable Securities.

(b)         Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such communications shall be:

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If to the Corporation:

Attn: Mr. Amir Adnani, President and CEO

Uranium Energy Corp.

9801 Anderson Mill Road, Suite 230, Austin, Texas, U.S.A., 78750

Telephone No.: (512) 828-6980

Facsimile No.:  (512) 233-2531;

With a copy to:

Attn: Thomas J. Deutsch

Lang Michener LLP

Royal Centre, 1055 West Georgia Street, Suite 1500, Vancouver, British Columbia, Canada, V6E 4N7

Telephone No.: (604) 691-7493

Facsimile No.: (604) 893-2398; and

With a copy to:

Attn: Subscriber 

____________________________________________________

____________________________________________________

Telephone No.:  ______________________________________

Facsimile No.:   ______________________________________

If to an Investor, to its address and facsimile number as set forth in the signature pages hereof, or as provided to the Corporation pursuant to Section 9 hereof in connection with a transferee or consignee of the rights under this Agreement, or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five days prior to the effectiveness of such change.  Written confirmation of receipt: (i) given by the recipient of such notice, consent, waiver or other communication; (ii) mechanically or electronically generated by the sender's facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission; or (iii) provided by a courier or overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

(c)         Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

(d)         All questions concerning the construction, validity, enforcement and interpretation of this Agreement 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.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.  each party hereby irrevocably waives any right it may have, and agrees not to request, a jury trial for the adjudication of any dispute hereunder or in connection herewith or arising out of this agreement or any transaction contemplated hereby.

- 15 -
(e)         The Transaction Documents and the instruments referenced therein constitute the entire agreement among the parties hereto with respect to the subject matter thereof.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to therein.  The Transactions Documents and the instruments referenced therein supersede all prior agreements and understandings among the parties hereto with respect to the subject matter thereof.

(f)         Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

(g)         The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning or interpretation hereof.  When a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement, unless otherwise clearly indicated.  Whenever the word "including" is used in this Agreement, it shall be deemed to be followed by the words "without limitation."  The use of any gender herein shall be deemed to be or include the other genders and the use of the singular herein shall be deemed to be or include the plural (and vice versa), wherever appropriate.

(h)         This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement.  This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

(i)         Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

(j)         All consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise specified in this Agreement, by the Majority Investors.

(k)         The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict construction will be applied against any party.

(l)         This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

(m)         Unless otherwise indicated, all dollar amounts referred to in this Agreement are in United States dollars.  

(n)         The obligations of each Investor hereunder are several and not joint with the obligations of any other Investor, and no provision of this Agreement is intended to confer any obligations on any Investor vis-a-vis any other Investor.  Nothing contained herein, and no action taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investor are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated herein.

- 16 -
(o)         Except as otherwise provided herein, in any other Transaction Document or as required by applicable law or legal process, no Investor may make any public announcement concerning this Agreement or the transactions contemplated by this Agreement without obtaining the prior written consent of the Corporation and giving the Corporation no less than 48 hours to review and comment on such public announcement prior to release.

[The remainder of this page has been intentionally left blank.  

The Corporation's signature is contained on the immediately following page.]

__________

 

 

 

 

 

- 17 -

 

 

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

	
URANIUM ENERGY CORP.

By:     __________________________________________

Name:    Amir Adnani

Title:      President, CEO and a director

	
THE UNDERSIGNED SUBSCRIBER

By:     __________________________________________

Name:    ________________________________________

Title:      _______________________________________

__________

 

 

 

Exhibit A

PLAN OF DISTRIBUTION

             The selling stockholders may, from time to time, sell any or all of their shares of common stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions.  These sales may be at fixed or negotiated prices.  The selling stockholders may use any one or more of the following methods when selling shares:

	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

	an exchange distribution in accordance with the rules of the applicable exchange;

	privately negotiated transactions;

	short sales;

	broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;

	a combination of any such methods of sale; and

	any other method permitted pursuant to applicable law.

             The selling stockholders may also sell shares under Rule 144 or Regulation S under the Securities Act, if available, rather than under this prospectus.

             The selling stockholders may also engage in short sales against the box, puts and calls and other transactions in our securities or derivatives of our securities and may sell or deliver shares in connection with these trades. 

             Broker-dealers engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales.  Broker-dealers may receive commissions or discounts from the selling stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated.  The selling stockholders do not expect these commissions and discounts to exceed what is customary in the types of transactions involved.  Any profits on the resale of shares of common stock by a broker-dealer acting as principal might be deemed to be underwriting discounts or commissions under the Securities Act.  Discounts, concessions, commissions and similar selling expenses, if any, attributable to the sale of shares will be borne by a selling stockholder.  The selling stockholders may agree to indemnify any agent, dealer or broker-dealer that participates in transactions involving sales of the shares if liabilities are imposed on that person under the Securities Act.

             The selling stockholders may from time to time pledge or grant a security interest in some or all of the shares of common stock owned by them and, if they default in the performance of their secured obligations, the pledgee or secured parties may offer and sell the shares of common stock from time to time under this prospectus after we have filed an amendment to this prospectus under the applicable provisions of the Securities Act amending the list of selling stockholders to include the pledge, transferee or other successors in interest as selling stockholders under this prospectus.  

             The selling stockholders also may transfer the shares of common stock in other circumstances, in which case the transferees, pledgee or other successors in interest will be the selling beneficial owners for purposes of this prospectus and may sell the shares of common stock from time to time under this prospectus after we have filed an amendment to this prospectus under the applicable provisions of the Securities Act amending the list of selling stockholders to include the pledge, transferee or other successors in interest as selling stockholders under this prospectus.

             We are required to pay all fees and expenses incident to the registration of the shares of common stock, including the reasonable fees and disbursements of counsel to the selling stockholders.  We have agreed to indemnify the selling stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

             The selling stockholders have advised us that they have not entered into any agreements, understandings or arrangements with any underwriters or broker-dealers regarding the sale of their shares of common stock, nor is there an underwriter or coordinating broker acting in connection with a proposed sale of shares of common stock by any selling stockholder.  If we are notified by any selling stockholder that any material arrangement has been entered into with a broker-dealer for the sale of shares of common stock, if required, we will file a supplement to this prospectus.  If the selling stockholders use this prospectus for any sale of the shares of common stock, they will be subject to the prospectus delivery requirements of the Securities Act.  

             The anti-manipulation rules of Regulation M under the Securities Exchange Act of 1934 may apply to sales of our common stock and activities of the selling stockholders.

__________EX10-26

Exhibit 10.26

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR ANY STATE SECURITIES LAWS, AND ARE PROPOSED TO BE ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT.   SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.

 

 

URANIUM ENERGY CORP.

SUBSCRIPTION AGREEMENT FOR UNITS

 

 

 

THE UNITS BEING OFFERED FOR SALE MAY ONLY BE PURCHASED

BY SUBSCRIBERS IN THE UNITED STATES OF AMERICA,

BY SUBSCRIBERS IN CANADA AND 

BY SUBSCRIBERS IN EUROPE

 

INSTRUCTIONS

A.          All Subscribers:
Complete and sign the Execution Page of the Subscription Agreement.

Complete and sign Schedule "B" attached to the Subscription Agreement and Appendix 1 attached thereto (Schedule "B" must be completed by all subscribers, including U.S. subscribers).

B.          U.S. Subscribers only:
Persons in the United States and U.S. Persons (as such terms are defined in Regulation S under the 1933 Act) should also complete and sign Schedule "C" attached to the Subscription Agreement.

A completed and originally executed copy of, and the other documents required to be delivered with, this Subscription Agreement, must, by no later than 1:00 p.m. (Vancouver time) on June 30, 2008, be, unless otherwise directed by the Corporation: (a) faxed to (604) 893-2679; and (b) delivered to the Corporation's counsel, Lang Michener LLP, Lawyers - Patent & Trade Mark Agents, at 1500 Royal Centre, 1055 West Georgia Street, Vancouver, British Columbia, Canada, V6E 4N7 (the "Corporation's Counsel"), together with payment for the exact subscription price for such Units by way of either (i) a banker's draft or certified check for the subscription price payable to "Lang Michener LLP In Trust" for the account of the Corporation or (ii) by wire transfer to the Corporation's Counsel pursuant to the following wiring instructions:

 

	
*
	
If coming from Canada:
	 
	 	
Bank Name:

Bank Address:

Transit Number:

Bank Number:

Account Name:

Reason:

Account Number:

Swift Code:
	
Bank of Montreal;

595 Burrard Street, Vancouver, British Columbia, Canada;

00040;

001;

Lang Michener LLP Client's Canadian Trust Account;

Re: Uranium Energy Corp.; File #57562-0029; Private Placement proceeds;

1577-447; and

BOFMCAM2.

	
*
	
If coming from the United States or Overseas:

	 	
Intermediary Bank:

Swift Code:

Fedwire ABA#:
	
Wachovia Bank, N.A.;

PNBPUS3NNYC; and

026005092.

In this regard, and should the Subscriber's subscription and/or subscription price payment be submitted to the Corporation's Counsel, in trust or otherwise (as above in respect to the wire transfer), then the Subscriber agrees that the Corporation's Counsel shall have no accountability to the Subscriber whatsoever and acknowledges that the Corporation's Counsel is merely a recipient for the Corporation and has no obligation of any nature to the Subscriber.  The Subscriber agrees that submission of the subscription price to the Corporation's Counsel in trust is to be deposited into the trust account of the Corporation and shall be the property of the Corporation immediately.  The Corporation's Counsel shall have the right to transact the subscription price monies solely at the direction of the Corporation or its agents and the Corporation's Counsel shall require no instruction from the Subscriber.  Under no circumstances shall the Corporation's Counsel be considered to be giving legal or other advice or services to the Subscriber and no communication between the Subscriber and the Corporation's Counsel shall be considered advice (at the most only administrative subscription assistance on behalf of the Corporation) and the Subscriber shall rely solely and exclusively on the Subscriber's own judgment and the advice of the Subscriber's own counsel.

__________

 

 

 

 

SUBSCRIPTION AGREEMENT FOR UNITS

TO:                         Uranium Energy Corp.

The undersigned (the "Subscriber") hereby irrevocably subscribes for and agrees to purchase the number of Units (as hereinafter defined; and each of which consists of one share of common stock and one-half of one share purchase warrant) of Uranium Energy Corp. (the "Corporation") set forth below for the aggregate purchase price set forth below, representing a purchase price of US$2.40 per Unit, upon and subject to the terms and conditions set forth in the following pages of this subscription agreement (together with the attached Terms and Conditions of Subscription for Units and the Schedules, collectively, referred to herein as the "Subscription Agreement" or the "Agreement").  In addition to this Execution Page, the Subscriber must also complete all applicable Schedules which form part of this Subscription Agreement.

	

_____________________________________________

(Name of Subscriber - please print)

By:  ________________________________________

        (Authorized Signature)

_____________________________________________

(Official Capacity or Title - please print)

_____________________________________________

(Please print name of individual whose signature appears above if different than the name of the subscriber printed above.)

_____________________________________________

(Subscriber's Address)

_____________________________________________

_____________________________________________

(Telephone Number)                           (E-Mail Address)
	 	

Number of Units:   ____________________________

	 
	

Aggregate Purchase Price:   ____________________

	 
	

If the Subscriber is signing as agent for a principal (beneficial purchaser) and is not purchasing as a trust company or a portfolio manager, or, in any case, purchasing as trustee or agent for accounts fully managed by it, complete the following and ensure that Schedule "B" and, if applicable, Schedule "C", is completed in respect of such principal:

_____________________________________________

(Name of Principal)

_____________________________________________

(Principal's Address)

_____________________________________________

_____________________________________________

(Principal's Telephone Number)   (Principal's E-Mail Address)

	 	 
	
Register the Common Shares and Warrants that form the Units as set forth below:

_____________________________________________

(Name)

_____________________________________________

(Account reference, if applicable)

_____________________________________________

(Address)

_____________________________________________

	
Deliver the Common Shares and Warrants that form the Units as set forth below:

_____________________________________________

(Name)

_____________________________________________

(Account reference, if applicable)

_____________________________________________

(Contact Name)

_____________________________________________

(Address)

_____________________________________________

(Telephone Number)                        (E-Mail Address)

ACCEPTANCE:  The Corporation hereby accepts the subscription as set forth above on the terms and conditions contained in this Subscription Agreement and the Corporation represents and warrants to the Subscriber that the representations and warranties contained in this Subscription Agreement are true and correct in all material respects as of the Closing Date (as hereinafter defined) and that the Subscriber is entitled to rely thereon.  The Corporation acknowledges and agrees that the Subscriber shall be entitled to the benefits of the Registration Rights Agreement (as hereinafter defined).

________________________, 2008.

	
URANIUM ENERGY CORP.

By:  ________________________________

        Authorized Signatory
	
	
Subscription No:

__________

Execution Page

TERMS AND CONDITIONS OF SUBSCRIPTION FOR UNITS

1.           Definitions
In this Agreement, unless the context otherwise requires:
(i)             "1933 Act" means the United States Securities Act of 1933, as amended;

(ii)            "Agreement" or "Subscription Agreement" means this subscription agreement, including all Schedules hereto, as the same may be amended, supplemented or restated from time to time;

(iii)           "Business Day" means a day on which Canadian chartered banks are open for the transaction of regular business in the City of Vancouver, British Columbia, Canada;

(iv)            "Closing" means the closing of the purchase and sale of the Offered Securities;

(v)             "Closing Date" means July 3, 2008, or such other date as the Corporation may agree;

(vi)            "Common Shares" means the shares of common stock of the Corporation, par value US$0.001 per share, as constituted on the date hereof;

(vii)           "Corporation" means Uranium Energy Corp., a corporation incorporated under the laws of the State of Nevada and includes any successor corporation thereto;

(viii)          "Liquidated Damages Warrants" means transferable share purchase warrants to acquire Warrant Shares, which Liquidated Damages Warrants are issuable to the Subscriber as liquidated damages in the event of a registration default as described in Section 2.B. hereof; 

(ix)            "NI 45-106" means National Instrument 45-106 - Prospectus and Registration Exemptions of the Canadian Securities Administrators;

(x)             "Offered Securities" means the Units of the Corporation offered for sale by the Company;

(xi)            "Person" means an individual, a firm, a corporation, a syndicate, a partnership, a trust, an association, an unincorporated organization, a joint venture, an investment club, a government or an agency or political subdivision thereof and every other form of legal or business entity of whatsoever nature or kind;

(xii)           "Public Record" means the Corporation's annual report on Form 10-KSB for the year ended July 31, 2007 and any quarterly reports filed on Form 10-QSB and current reports filed on Form 8-K since July 31, 2007 to the Closing Date;

(xiii)          "Purchase Price" means US$2.40 per Unit;

(xiv)           "Purchased Securities" means the Offered Securities purchased by the Subscriber pursuant to this Subscription Agreement;

(xv)            "Registerable Securities" means the Common Shares issued as part of the Units and the Warrant Shares issuable upon exercise of the Warrants and the Liquidated Damages Warrants;

(xvi)           "Registration Deadline" means 5:00 p.m. (Vancouver, British Columbia, time) on the first Business Day which is not less than three months after the Closing Date;

(xvii)          "Registration Rights Agreement" means the registration rights agreement to be dated on or before the Closing Date between the Corporation and the Subscribers;

(xviii)         "Registration Statement" means the registration statement of the Corporation to be filed with the SEC, as amended and supplemented, in order to register resales of the Registerable Securities, from time to time, by the Subscribers or their transferees or assigns;

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(xix)           "Regulation D" means Regulation D under the 1933 Act;

(xx)            "Regulation S" means Regulation S under the 1933 Act;

(xxi)          "SEC" means the United States Securities and Exchange Commission;

(xxii)         "Securities Laws" means the securities legislation and regulations of, and the instruments, policies, rules, orders, codes, notices and published interpretation notes of the applicable securities regulatory authority or applicable securities regulatory authorities of, the applicable jurisdiction or jurisdictions;

(xxiii)         "Subscriber" or "you" means the Person purchasing the Purchased Securities and whose name appears on the Execution Page hereof;

(xxiv)          "United States" means the "United States" as that term is defined in Regulation S;

(xxv)          "U.S. Accredited Investor" means an institutional "accredited investor" as that term is defined in Rule 501(a)(1),(2),(3) or (7) of Regulation D;

(xxvi)         "U.S. Person" means a "U.S. person" as that term is defined in Regulation S;

(xxvii)        "U.S. Subscriber" means: (a) any Person purchasing the Offered Securities in the United States; (b) any U.S. Person; (c) any Person purchasing the Offered Securities on behalf of any Person in the United States or any U.S. Person; (d) any Person that receives or received an offer for the Offered Securities while in the United States; or (e) any Person that is in the United States at the time the buy order was made or the Subscription Agreement was executed; provided, however, that a U.S. Subscriber shall not include any person who has any discretionary or similar account (other than an estate or trust) held for the benefit or account of a non-U.S. Person by a professional fiduciary resident in the United States;

(xxviii)       "Warrants" means the transferable share purchase warrants issued as part of the Units, each of which whole Warrant being exercisable to purchase one Warrant Share at a price of US$3.10 per Warrant Share, expiring at 5:00 p.m. (Vancouver time) on the date that is two years from the date of Closing; and 

(xxix)         "Warrant Shares" means the Common Shares issuable upon exercise of the Warrants or the Liquidated Damages Warrants.

2.           The Offering

A.           The Purchased Securities:

This Subscription Agreement confirms your agreement to purchase from the Corporation, subject to the terms and conditions set forth herein, that number of Units, at the price of US$2.40 per Unit (the "Purchase Price"), set out beside your name on the Execution Page hereof (the "Purchased Securities").  Each Unit consists of one share of common stock (each a "Common Share") of the Corporation and one-half of one transferable share purchase warrant (each whole being a "Warrant").  Each whole Warrant is immediately exercisable by the holder thereof to purchase one Common Share (each a "Warrant Share") at a price of US$3.10 per Warrant Share, expiring at 5:00 p.m. (Vancouver, British Columbia, time) on the date that is two years from the date of Closing.  You acknowledge (on your own behalf and, if applicable, on behalf of each beneficial purchaser for whom you are contracting hereunder) that the Purchased Securities form part of a larger offering of Units (each an "Offered Security" and collectively, the "Offered Securities") up to approximately US$10.0 million, which Offered Securities are being offered on a private placement basis to Persons resident in the Provinces of Canada, in the United States and in Europe.  A term sheet with respect to the offering of the Offered Securities is attached hereto as Schedule "A".

B.           Registration Statement:

In the Registration Rights Agreement the Corporation will covenant and agree to use reasonable best efforts to prepare and file the Registration Statement with the SEC within 30 days following the Closing Date and to use its reasonable best efforts to cause the Registration Statement to be declared effective by the SEC on or before the Registration Deadline (three months from the Closing Date herein).

- 3 -

In accordance with the Registration Rights Agreement, if the Registration Statement has not been declared effective by the SEC on or prior to the Registration Deadline, or if the effectiveness of the Registration Statement is not maintained by the Corporation as described in the Registration Rights Agreement, the Corporation shall provide to you, as liquidated damages and not as a penalty, such number of additional whole share purchase warrants (each a "Liquidated Damages Warrant") equal to one one-hundredth (1/100th) of such an additional Liquidated Damages Warrant for each US$1.00 in aggregate Subscription Price funds paid by you for Purchased Securities purchased pursuant to this Agreement with respect to each and every 30 calendar-day period (or partial period thereof) during which the Registration Statement is not effective after the Registration Deadline until the registration default is cured; provided, however, that the maximum number of Common Shares issuable pursuant to the offering (including Warrant Shares issuable upon exercise of the Warrants and the Liquidated Damages Warrants), shall not exceed 19.9% of the Corporation's issued and outstanding share capital unless shareholder approval has been obtained, which the Corporation shall use reasonable best efforts to obtain, if necessary.

Each whole Liquidated Damages Warrant shall entitle the holder thereof to purchase one additional Common Share of the Corporation (each a "Warrant Share") at an exercise price of US$3.10 per Warrant Share, and shall expire at 5:00 p.m. (Vancouver, British Columbia, time) on the date that is two years from the date the Liquidated Damages Warrant is issued.

3.           Conditions of Purchase

In connection with your purchase of the Purchased Securities, the following documents are enclosed herewith which you are requested to complete, sign as indicated and return together with an executed copy of this Agreement (see "Execution Page") as soon as possible and in any event no later than 1:00 p.m. (Vancouver, British Columbia, time) on June 30, 2008:
(a)         Schedule "B", being the Certificate of Accredited Investor Status under NI 45-106; and

(b)         if you are or, if applicable, the beneficial person for whom you are contracting hereunder is, a U.S. Subscriber, Schedule "C", being the Certificate for U.S. Accredited Investors.

The obligation of the Corporation to sell the Purchased Securities to you is subject to, among other things, the conditions that: 
(a)         you execute and return all documents required by applicable Securities Laws, including the forms set out in Schedules "B" and "C" attached hereto, as applicable, to the Corporation's direction herein or otherwise, as the offer and sale of the Purchased Securities by the Corporation to you will not be qualified or registered under applicable Securities Laws; 

(b)         the representations and warranties made by you herein are true and correct when made and are true and correct on the Closing Date with the same force and effect as if they had been made on and as of such date;

(c)         all covenants, agreements and conditions contained in this Agreement to be performed by you on or prior to the Closing Date shall have been performed or complied with; and

(d)         all necessary regulatory approvals being obtained prior to the Closing Date.

By returning this Agreement you consent to the filing by the Corporation of all documents required by applicable Securities Laws.

If you are not subscribing for the Purchased Securities for your own account and you are not a portfolio manager purchasing as agent for accounts which are fully managed by you, each beneficial purchaser for whom you are contracting hereunder must be purchasing the Purchased Securities as principal for its own account and (unless you are an authorized agent with power to sign on behalf of the beneficial purchaser) must execute all documents required by applicable Securities Laws with respect to the Purchased Securities being acquired by each such purchaser as principal.  If you are signing as agent or pursuant to a power of attorney for the Subscriber, you have authority to bind the Subscriber.

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You agree, and you agree to cause any beneficial purchaser for whom you are contracting hereunder, to comply with all applicable Securities Laws concerning the purchase of, the holding of, and the resale restrictions applicable to, the Purchased Securities, the Liquidated Damages Warrants and the Warrant Shares. 

You acknowledge that the Corporation has the right to close the subscription books at any time without notice and to accept or reject any subscription in its sole discretion.  If this subscription is rejected, in whole or in part, you acknowledge that the unused portion of the aggregate Purchase Price will be returned to you without interest.

4.           The Closing

The Closing will be completed at the offices of the Corporation's counsel, Lang Michener LLP, Lawyers - Patent & Trade Mark Agents, at 1500 Royal Centre, 1055 West Georgia Street, Vancouver, British Columbia, Canada, V6E 4N7 (the "Corporation's Counsel" herein), at 10:00 a.m. (Vancouver, British Columbia, time) on July 3, 2008, or such other time as the Corporation may agree.

Certificates representing the Common Shares and Warrants issued as part of the Purchased Securities will be available for delivery to you at Closing against payment to the Corporation through which you subscribed for the Purchased Securities of the aggregate amount of the Purchase Price for the Purchased Securities in freely transferable United States funds.  Such payment is to be made no later than 1:00 p.m. (Vancouver, British Columbia, time) on June 30, 2008, by way of either (i) a banker's draft or certified check for the subscription price payable to "Lang Michener LLP In Trust" for the account of the Corporation or (ii) by wire transfer to the Corporation's Counsel pursuant to the following wiring instructions:

	
*
	
If coming from Canada:
	 
	 	
Bank Name:

Bank Address:

Transit Number:

Bank Number:

Account Name:

Reason:

Account Number:

Swift Code:
	
Bank of Montreal;

595 Burrard Street, Vancouver, British Columbia, Canada;

00040;

001;

Lang Michener LLP Client's Canadian Trust Account;

Re: Uranium Energy Corp.; File #57562-0029; Private Placement proceeds;

1577-447; and

BOFMCAM2.

	
*
	
If coming from the United States or Overseas:

	 	
Intermediary Bank:

Swift Code:

Fedwire ABA#:
	
Wachovia Bank, N.A.;

PNBPUS3NNYC; and

026005092.

In this regard, and should the Subscriber's subscription and/or Purchase Price payment be submitted to the Corporation's Counsel, in trust or otherwise (as above in respect to the wire transfer), then the Subscriber agrees that the Corporation's Counsel shall have no accountability to the Subscriber whatsoever and acknowledges that the Corporation's Counsel is merely a recipient for the Corporation and has no obligation of any nature to the Subscriber.  The Subscriber agrees that submission of the Purchase Price to the Corporation's Counsel in trust is to be deposited into the trust account of the Corporation and shall be the property of the Corporation immediately.  The Corporation's Counsel shall have the right to transact the Purchase Price monies solely at the direction of the Corporation or its agents and the Corporation's Counsel shall require no instruction from the Subscriber.  Under no circumstances shall the Corporation's Counsel be considered to be giving legal or other advice or services to the Subscriber and no communication between the Subscriber and the Corporation's Counsel shall be considered advice (at the most only administrative subscription assistance on behalf of the Corporation) and the Subscriber shall rely solely and exclusively on the Subscriber's own judgment and the advice of the Subscriber's own counsel.

You hereby irrevocably appoint the Corporation to act as your agent for the purpose of acting as your representative at the Closing and hereby appoint the Corporation, with full power of substitution, as your true and lawful attorney in your place or stead to execute in your name and on your behalf all closing receipts and documents required, to complete or correct any errors or omissions in any form or document provided by you, including this Subscription Agreement, to approve any opinion, certificate or other document addressed to you, to waive, in whole or in part, any representation, warranty, covenant or condition for your benefit and contained in the Registration Rights Agreement or in this Agreement, to terminate or not deliver this Agreement if any condition is not satisfied, in such manner and on such terms and conditions as the Corporation in its sole discretion thereof may determine, and to accept delivery of the certificate representing the Purchased Securities on the Closing Date.

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5.           Prospectus Exemptions

The offer and sale of the Purchased Securities (and, if applicable, the issuance of any Liquidated Damages Warrants and the offer and sale of any Warrant Shares) by the Corporation to you is conditional upon such offer, sale or issuance being exempt from the requirements as to the filing of a prospectus or registration statement, and as to the preparation of an offering memorandum or similar document contained in any statute, regulation, instrument, rule or policy applicable to the offer and sale of the Purchased Securities (and, if applicable, the issuance of any Liquidated Damages Warrants or the offer and sale of any Warrant Shares) or upon the issue of such orders, consents or approvals as may be required to permit such sale or issuance without the requirement of filing a prospectus or registration statement, or delivering an offering memorandum or similar document. 

You acknowledge and agree that: 
(a)         you have, or any beneficial purchaser for whom you are contracting hereunder has, been independently advised as to or are aware of the restrictions with respect to trading in, and the restricted period or statutory hold period applicable to, the Purchased Securities, the Liquidated Damages Warrants and the Warrant Shares imposed by the Securities Laws of the jurisdiction in which you reside or to which you or such securities are subject, and that a suitable legend or legends will be placed on the certificates representing the Purchased Securities, the Liquidated Damages Warrants and the Warrant Shares to reflect the applicable restricted period and hold period to which the Purchased Securities, the Liquidated Damages Warrants and the Warrant Shares are subject;

(b)         you have, or any beneficial purchaser for whom you are contracting hereunder has, not received or been provided with a prospectus, registration statement, offering memorandum (within the meaning of the Securities Laws) or similar document and that your decision, or the decision of any beneficial purchaser for whom you are contracting hereunder, to enter into this Agreement and to purchase the Purchased Securities from the Corporation has not been based upon any verbal or written representation as to fact or otherwise made by or on behalf of the Corporation (other than those contained in this Agreement and the Registration Rights Agreement, in each case which will survive the Closing) and that your decision, or the decision of any beneficial purchaser for whom you are contracting hereunder, is based entirely upon such documents and publicly available information concerning the Corporation and, the offer and sale of the Purchased Securities was not accompanied by any advertisement in printed media of general and regular paid circulation including printed public media, radio, television or telecommunications, including electronic display and the Internet;

(c)         as a consequence of the sale being exempt from the prospectus and registration requirements of the Securities Laws:
(i)             certain protections, rights and remedies provided by the Securities Laws, including certain statutory rights of rescission or damages, will not be available to you, or any beneficial purchaser for whom you are contracting hereunder,

(ii)            you, or any beneficial purchaser for whom you are contracting hereunder, may not receive information that would otherwise be required to be given under the Securities Laws, and

(iii)           the Corporation is relieved from certain obligations that would otherwise apply under the Securities Laws; and

(d)         no Person has made any written or oral representation:
(i)             that any Person will resell or repurchase the Purchased Securities, the Liquidated Damages Warrants or the Warrant Shares,

(ii)            that any Person will refund the Purchase Price,

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(iii)           as to the future price or value of the Common Shares, the Warrants or the Liquidated Damages Warrants; or

(iv)            that the Common Shares will be or remain listed or otherwise qualified for trading on any stock exchange or any quotation or stock reporting system.

By your acceptance of this Agreement you and any others for whom you are contracting hereunder represent, warrant, covenant, agree and acknowledge, as applicable, to and with the Corporation (which representations, warranties, covenants, agreements and acknowledgements shall survive the Closing), and acknowledge that the Corporation is relying on such representations and warranties in connection with the transactions contemplated hereby, that:

A.           General:
(a)         You are and any beneficial purchaser for whom you are contracting hereunder is resident in the jurisdiction set out under the heading "address" above your signature set forth on the Execution Page of this Agreement.

(b)         If you are an individual, you have attained the age of majority in the jurisdiction in which you are subscribing and have the legal capacity and competence to enter into and be bound by this Agreement and to perform the covenants and obligations herein.

(c)         If you are not an individual (i) you have the legal capacity to authorize, execute and deliver this Agreement, and (ii) the individual signing this Agreement has been duly authorized to execute and deliver this Agreement.

(d)         None of the funds being used to purchase the Purchased Securities are (or in connection with your purchase of the Warrant Shares, if applicable, will be) to your knowledge proceeds obtained or derived directly or indirectly as a result of illegal activities.

(e)         You are and any beneficial purchaser for whom you are contracting hereunder is at arm's-length, within the meaning of the Securities Laws of British Columbia, with the Corporation.

(f)         You are not and any beneficial purchaser for whom you are contracting hereunder is not a "promoter" of the Corporation within the meaning of the Securities Laws of British Columbia.

(g)         You are not, with respect to the Corporation or any of its affiliates, a "control person" as defined under the Securities Laws of British Columbia or an "affiliate" as defined under the 1933 Act, and the purchase of the Purchased Securities (or, if applicable, acquisition of Liquidated Damages Warrants or purchase of Warrant Shares) hereunder will not result in you becoming a control person or an affiliate.

(h)         If required by applicable Securities Laws or the Corporation, you will execute, deliver and file, or assist the Corporation in filing, such reports, undertakings and other documents with respect to the issue, offer and/or sale of the Purchased Securities (or, if applicable, the issue , offer and/or sale of the Liquidated Damages Warrants or Warrant Shares) as may be required by any securities commission, stock exchange or other regulatory authority.

(i)         Other than what you have disclosed in advance to the Corporation, there is no person acting or purporting to act in connection with the transactions contemplated herein who is entitled to any brokerage or finder's fee.  If any person establishes a claim that any fee or other compensation is payable in connection with this subscription for the Purchased Securities, you covenant to indemnify and hold harmless the Corporation with respect thereto and with respect to all costs reasonably incurred in the defence thereof.

(j)         The Corporation's Counsel and other legal counsel retained by the Corporation is acting as counsel to the Corporation and not as counsel to you. 

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(k)         If you are, or any beneficial purchaser for whom you are contracting hereunder is, a resident, or otherwise subject to the Securities Laws, of a jurisdiction other than a jurisdiction in Canada or of the United States, you and any beneficial purchaser for whom you are contracting hereunder: (i) have knowledge of or have been independently advised as to and will comply with the requirements of the Securities Laws of the jurisdiction of your residence or to which you are otherwise subject, or the jurisdiction of residence of any beneficial purchaser for whom you are contracting hereunder or to which such beneficial purchaser is otherwise subject, as the case may be; (ii) confirm that the requirements of the Securities Laws of the jurisdiction of your residence or to which you are otherwise subject, the jurisdiction of residence of any beneficial purchaser for whom you are contracting hereunder or to which such beneficial purchaser is otherwise subject, as the case may be, does not (A) require the Corporation to make any filings or seek any approvals of any kind whatsoever from any regulatory authority of any kind or nature whatsoever, (B) except as contemplated herein, require the Corporation to prepare and file a prospectus, registration statement or similar document or (C) impose any additional registration or other requirements on the Corporation; and (iii) will provide such evidence of compliance with all such matters as the Corporation may request.

(l)         You are and any beneficial purchaser for whom you are contracting hereunder is capable of assessing the proposed investment in the Purchased Securities (or, if applicable, the Liquidated Damages Warrants or the Warrant Shares) as a result of your financial or investment experience or as a result of advice received from a registered person other than the Corporation or an affiliate thereof and you are or any beneficial purchaser for whom you are contracting hereunder is, as the case may be, able to bear the economic loss of the investment in the Purchased Securities (or, if applicable, the Liquidated Damages Warrants or the Warrant Shares).

(m)         You have had access to such information, if any, concerning the Corporation as you considered necessary in connection with your investment decision to invest in the Purchased Securities, the Liquidated Damages Warrants and the Warrants Shares, including receiving satisfactory answers to any questions you have asked any of the officers of the Corporation.

(n)         You acknowledge that the financial statements of the Corporation have been prepared in accordance with generally accepted accounting principles of the United States, which differ in some respects from generally accepted accounting principles of Canada, and thus may not be comparable to financial statements of Canadian companies.

(o)         You acknowledge that there may be material tax consequences to you of an acquisition, holding or disposition of the Purchased Securities (or, if applicable, the Liquidated Damages Warrants or the Warrant Shares).  The Corporation gives no opinion and makes no representation with respect to the tax consequences to you under United States, Canadian, state, provincial, local or foreign tax law of your acquisition, holding or disposition of such securities, and you acknowledge that you are solely responsible for determining the tax consequences of your investment.  You are not relying on the Corporation or their affiliates or counsel in this regard.

(p)         You are an "accredited investor" within the meaning of NI 45-106 and:
(i)         you are either purchasing the Purchased Securities: (A) as principal and not for the benefit of any other Person, or you are deemed under NI 45-106 to be purchasing the Purchased Securities as principal; or (B) as agent for a beneficial purchaser disclosed on the Execution Page of this Agreement, and you are an agent or trustee with proper authority to execute all documents required in connection with the purchase of the Purchased Securities on behalf of such disclosed beneficial purchaser and such disclosed beneficial purchaser for whom you are contracting hereunder is purchasing as principal and not for the benefit of any other Person, or is deemed under NI 45-106 to be purchasing the Purchased Securities as principal, and such disclosed beneficial purchaser is an "accredited investor" within the meaning of NI 45-106;

(ii)        if you are, or the beneficial purchaser for whom you are contracting hereunder is, as the case may be, a Person, other than an individual or investment fund, that has net assets of at least CDN$5,000,000, you were not, or the beneficial purchaser for whom you are contracting hereunder was not, as the case may be, created or used solely to purchase or hold securities as an accredited investor; and

(iii)       you have concurrently executed and delivered a certificate in the form attached as Schedule "B" hereto and have completed Appendix 1 thereto.

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(q)         Unless you have made the representations set forth below in Section 5.B hereof (United States) and have completed Schedule "C" attached hereto:
(i)             you are not a Person in the United States or a U.S. Person and you are not acquiring the Purchased Securities (and will not acquire any Liquidated Damages Warrants or Warrant Shares) for the account or benefit of any Person in the United States or U.S. Person;

(ii)            you were not offered the Offered Securities in the United States; and

(iii)           at the time the buy order for the Purchased Securities was originated, you were outside the United States and this Agreement was not executed or delivered in the United States.

(r)         If you are not a U.S. Subscriber:
(i)             you understand that if you decide to offer, sell, pledge or otherwise transfer the Common Shares or the Warrant Shares, such securities may be offered, sold or otherwise transferred only: (A) to the Corporation; (B) pursuant to an effective registration statement under the 1933 Act, (C) in accordance with Rule 144 under the 1933 Act, if available, and in compliance with applicable state Securities Laws, (D) in accordance with the provisions of Regulation S, if available, or (E) in a transaction that does not otherwise require registration under the 1933 Act or any applicable state Securities Laws if an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, has been provided to the Corporation to that effect, and further agree that hedging transactions involving such securities may not be conducted unless in compliance with the 1933 Act and other applicable Securities Laws;

(ii)           you understand that if you decide to offer, sell, pledge or otherwise transfer the Warrants or the Liquidated Damages Warrants, such securities may be offered, sold or otherwise transferred only: (A) pursuant to an effective registration statement under the 1933 Act; or (B) in a transaction that does not otherwise require registration under the 1933 Act or any applicable state Securities Laws if an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, has been provided to the Corporation to that effect, and further agree that hedging transactions involving such securities may not be conducted unless in compliance with the 1933 Act and other applicable Securities Laws;

(iii)           you acknowledge and agree that the Purchased Securities, the Liquidated Damages Warrants and the Warrant Shares, upon issuance, will be "restricted securities" within the meaning of Rule 144(a)(3) of the 1933 Act and will remain "restricted securities" notwithstanding any resale within or outside the United States unless the sale is completed pursuant to an effective registration statement under the 1933 Act;

(iv)            you understand that the Corporation is the seller of the Purchased Securities, the Liquidated Damages Warrants and the Warrant Shares and that, for purposes of Regulation S, a "distributor" is any underwriter, dealer or other person who participates, pursuant to a contractual arrangement, in the distribution of securities offered or sold in reliance on Regulation S and that an "affiliate" is any partner, officer, director or any person directly or indirectly controlling, controlled by or under common control with any person in question; except as otherwise permitted by Regulation S, you agree that you will not, during a six-month distribution compliance period, act as a distributor, either directly or through any affiliate, or sell, transfer, hypothecate or otherwise convey the Purchased Securities or the Warrant Shares other than to or for the account or benefit of a non-U.S. Person; and

(v)             you will not offer, sell or otherwise dispose of the Purchased Securities, Liquidated Damages Warrants or Warrant Shares except in accordance with the transfer restrictions described herein in the United States or to a U.S. Person unless: (A) such offer, sale or disposition is made in accordance with an exemption from the registration requirements under the 1933 Act and the Securities Laws of applicable states of the United States; or (B) the SEC has declared effective a registration statement in respect of such securities. In the case of (A), the Corporation may require, as a condition of granting its consent, a legal opinion of a firm reasonably acceptable to the Corporation confirming that the sale is not subject to the registration requirement of the 1933 Act.

- 9 -
(s)         You and any beneficial purchaser for whom you are contracting hereunder acknowledge that no agency, governmental authority, securities commission or similar regulatory body, stock exchange or other entity has reviewed, passed on or made any finding or determination as to the merit of the investment in the Offered Securities, the Liquidated Damages Warrants or the Warrant Shares, nor have any such agencies or governmental authorities made any recommendation or endorsement with respect to such securities.

(t)         You consent to the Corporation making a notation on its records or giving instructions to any transfer agent of the Corporation in order to implement the restrictions on transfer set forth herein.

(u)         This Agreement has been duly executed and delivered by you and, when accepted by the Corporation, will constitute your legal, valid and binding obligation enforceable against you in accordance with the terms hereof or, if you are acting as agent for a beneficial purchaser, will constitute a legal, valid and binding obligation of such beneficial purchaser in accordance with the terms hereof.

(v)         If you are contracting hereunder as trustee or agent (including, for greater certainty, a portfolio manager or comparable adviser) for one or more beneficial purchasers, you are authorized to execute and deliver this Agreement and all other necessary documentation in connection with the subscription made on behalf of such beneficial purchaser or beneficial purchasers and this Agreement has been authorized, executed and delivered on behalf of such beneficial purchaser or beneficial purchasers, and you acknowledge that the Corporation may be required by law to disclose the identity of each beneficial purchaser for whom you are contracting hereunder.

(w)         The execution and delivery of this Agreement, the performance and compliance with the terms hereof, the purchase of the Purchased Securities and the completion of the transactions described herein by you will not result in any material breach of, or be in conflict with or constitute a material default under, or create a state of facts which, after notice or lapse of time, or both, would, if you are not or any beneficial purchaser for whom you are contracting hereunder is not an individual, constitute a material default under any term or provision of your constating documents, by-laws or resolutions or the constating documents, by-laws or resolutions of any beneficial purchaser for whom you are contracting hereunder, as the case may be, the Securities Laws or any other laws applicable to you or any beneficial purchaser for whom you are contracting hereunder, any agreement to which you are or any beneficial purchaser for whom you are contracting hereunder is a party, or any judgment, decree, order, statute, rule or regulation applicable to you or any beneficial purchaser for whom you are contracting hereunder.

(x)         You represent and warrant to the Corporation that the funds representing the Purchase Price in respect of the Purchased Securities (and, if applicable, the Warrants Shares) which will be advanced by you to the Corporation hereunder will not represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the "PCMLTFA") or similar legislation and you acknowledge that the Corporation may in the future be required by law to disclose your name and other information relating to this Subscription Agreement and your subscription hereunder, on a confidential basis, pursuant to the PCMLTFA or similar legislation.  To the best of your knowledge: (A) none of the subscription funds provided by you (i) have been or will be derived from or related to any activity that is deemed criminal under the laws of Canada, the United States of America, or any other jurisdiction, or (ii) are being tendered on behalf of a person or entity who has not been identified to you; and (B) you will promptly notify the Corporation if you discover that any of such representations cease to be true, and to provide the Corporation with appropriate information in connection therewith.

- 10 -
(y)         If you are, or the beneficial purchaser for whom you are contracting hereunder is, a resident of the Province of Ontario, you authorize the indirect collection of personal information (as defined in the Securities Laws of the Province of Ontario) by the Ontario Securities Commission and confirm that you have been notified by the Corporation:
(i)            that the Corporation will be delivering such personal information to the Ontario Securities Commission;

(ii)            that such personal information is being collected indirectly by the Ontario Securities Commission under the authority granted to it in the Securities Laws of the Province of Ontario;

(iii)           that such personal information is being collected for the purpose of the administration and enforcement of the Securities Laws of the Province of Ontario; and

(iv)            that the title, business address and business telephone number of the public official in the Province of Ontario who can answer questions about the Ontario Securities Commission's indirect collection of personal information is as follows:
Administrative Assistant to the Director of Corporate Finance

Ontario Securities Commission

Suite 1903, Box 55, 20 Queen Street West, Toronto, Ontario, Canada, M5H 3S8

Telephone:                 416-593-8086

(z)         You, on your own behalf and, if applicable, on behalf of each beneficial purchaser for whom you are contracting hereunder, acknowledge and consent to the fact that the Corporation is collecting your personal information (as that term is defined under applicable privacy legislation, including, without limitation, the Personal Information Protection and Electronic Documents Act (Canada) and any other applicable similar, replacement or supplemental provincial or federal legislation or laws in effect from time to time), or that of each beneficial purchaser for whom you are contracting hereunder, for the purpose of completing this Agreement.  You, on your own behalf and, if applicable, on behalf of each beneficial purchaser for whom you are contracting hereunder, acknowledge and consent to the Corporation retaining such personal information for as long as permitted or required by law or business practices.  You, on your own behalf and, if applicable, on behalf of each beneficial purchaser for whom you are contracting hereunder, further acknowledge and consent to the fact that the Corporation may be required by the Securities Laws and the rules and policies of any stock exchange to provide regulatory authorities with any personal information provided by you in this Agreement.  You represent and warrant that you have the authority to provide the consents and acknowledgements set out in this paragraph on behalf of each beneficial purchaser for whom you are contracting hereunder.  In addition to the foregoing, you agree and acknowledge that the Corporation may use and disclose your personal information, or that of each beneficial purchaser for whom you are contracting hereunder, as follows:
(i)             for internal use with respect to managing the relationships between and contractual obligations of the Corporation and you or any beneficial purchaser for whom you are contracting hereunder;

(ii)            for use and disclosure for income tax related purposes, including without limitation, where required by law, disclosure to Canada Revenue Agency;

(iii)           disclosure to stock exchanges, securities regulatory authorities and other regulatory bodies with jurisdiction with respect to listing applications, prospectus filings, reports of trade and similar regulatory filings;

(iv)            disclosure to a governmental or other authority to which the disclosure is required by court order or subpoena compelling such disclosure and where there is no reasonable alternative to such disclosure;

(v)             disclosure to professional advisers of the Corporation in connection with the performance of their professional services;

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(vi)            disclosure to any person where such disclosure is necessary for legitimate business reasons and is made with your prior written consent;

(vii)           by including it in closing books relating to the offering contemplated hereby;

(viii)          disclosure to a court determining the rights of the parties under this Agreement; or

(ix)            for use and disclosure as otherwise required or permitted by law.

The contact information for the officer of the Corporation who can answer questions about the collection of information by the Corporation is as follows:

	
Name and Title:
	
Amir Adnani, President and Chief Executive Officer

	
Issuer Name:
	
Uranium Energy Corp.

	
Address:
	
9801 Anderson Mill Road, Suite 230, Austin, Texas, U.S.A., 78750

	
Phone No.:
	
(512) 828-6980

	
Fax No.:
	
(512) 233-2531

	
e-mail:
	
aadnabi@uraniumenergy.com

(aa)       You agree that your representations, warranties and covenants herein will be true and correct both as of the execution of this Subscription Agreement and as of the time of Closing and will survive the completion of the issue of the Purchased Securities.  Your representations, warranties and covenants herein are made with the intent that they be relied upon by the Corporation and its counsel in determining your eligibility to subscribe for the Purchased Securities, and you agree to indemnify and hold harmless the Corporation and its respective affiliates, shareholders, directors, officers, partners, employees, advisors, counsel and agents, from and against all losses, claims, costs, expenses and damages or liabilities whatsoever which any of them may suffer or incur which are caused or arise from a breach thereof.  You undertake to immediately notify the Corporation at Uranium Energy Corp., 9801 Anderson Mill Road, Suite 230, Austin, Texas, U.S.A., 78750, Attention: Amir Adnani (Fax Number: (512) 233-2531), of any change in any statement or other information relating to you set forth herein which takes place prior to the time of the Closing.

B.           United States:  If you are a U.S. Subscriber, then:
(a)         You understand and acknowledge that the Purchased Securities, the Liquidated Damages Warrants and the Warrant Shares have not been registered under the 1933 Act or any state securities laws and that the sale of the Purchased Securities contemplated hereby is being made to a limited number of U.S. Accredited Investors in transactions not requiring registration under the 1933 Act; accordingly the Purchased Securities are, and the Liquidated Damages Warrants and the Warrant Shares, upon issuance prior to the Registration Statement becoming effective, will be, "restricted securities" within the meaning Rule 144(a)(3) of the 1933 Act.

(b)         You have no contract, undertaking, agreement or arrangement with any Person to sell, transfer or pledge to such Person, or anyone else, the Purchased Securities, Liquidated Damages Warrants or Warrant Shares, or any part thereof, or any interest therein, and you have no present plans to enter into any such contract, undertaking, agreement or arrangement.

(c)         You acknowledge that the Corporation has not yet filed a registration statement under the 1933 Act in respect of the Registerable Securities, and you have not been supplied with any of the information that would be found in a registration statement if the Registerable Securities were registered under the 1933 Act and, if the Registration Statement does not become effective, you acknowledge that there will be substantial restrictions on the transferability of, and that it may not be possible to liquidate your investment readily in, the Registerable Securities.

(d)         You are a U.S. Accredited Investor and acknowledge that you are acquiring the Purchased Securities as an investment for your own account or for the account of a U.S. Accredited Investor as to which you exercise sole investment discretion and not with a view to any resale, distribution or other disposition of the Purchased Securities in violation of the federal or state securities laws of the United States and you have concurrently executed and delivered a certificate in the form attached as Schedule "C" hereto.  You acknowledge that you will be required to confirm your status as a U.S. Accredited Investor and make similar representations to those contained in this Section 5.B. at the time of exercise of any Warrants or Liquidated Damages Warrants.

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(e)         You have concurrently executed and delivered a certificate in the form attached as Schedule "B" hereto and have completed Appendix 1 thereto.

(f)         You understand and agree that there may be material tax consequences to you of an acquisition, holding or disposition of the Purchased Securities, the Liquidated Damages Warrants or the Warrant Shares.  The Corporation gives no opinion and makes no representation with respect to the tax consequences to you under United States, state, local or foreign tax law of your acquisition, holding or disposition of such securities, and you acknowledge that you are solely responsible for determining the tax consequences of your investment.

(g)         You understand that the Purchased Securities, the Liquidated Damages Warrants and the Warrant Shares may not be sold or transferred in the United States or to a U.S. Person prior to the Registration Statement becoming effective unless an exemption is available from the registration requirements of the 1933 Act and applicable state Securities Laws.

(h)         You understand that if you decide to offer, sell, pledge or otherwise transfer the Common Shares or the Warrant Shares, such securities may be offered, sold or otherwise transferred only: (A) to the Corporation; (B) pursuant to an effective registration statement under the 1933 Act; (C) in accordance with Rule 144 under the 1933 Act, if available, and in compliance with applicable state Securities Laws; (D) in accordance with the provisions of Regulation S, if available; or (E) in a transaction that does not otherwise require registration under the 1933 Act or any applicable state Securities Laws if an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, has been provided to the Corporation to that effect, and further agree that hedging transactions involving such securities may not be conducted unless in compliance with the 1933 Act and other applicable Securities Laws.

(i)         You understand that if you decide to offer, sell, pledge or otherwise transfer the Warrants or the Liquidated Damages Warrants, such securities may be offered, sold or otherwise transferred only:  (A) pursuant to an effective registration statement under the 1933 Act; or (B) in a transaction that does not otherwise require registration under the 1933 Act or any applicable state Securities Laws if an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, has been provided to the Corporation to that effect, and further agree that hedging transactions involving such securities may not be conducted unless in compliance with the 1933 Act and other applicable Securities Laws.

(j)         You have not purchased the Purchased Securities as a result of any form of general solicitation or general advertising (as those terms are used in Regulation D), including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio, or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising.

6.           Legends

A.           Common Shares Issued as Part of Units:

You acknowledge that, in addition to the other legends that may be required by this Agreement, the certificates representing the Common Shares issued as part of the Units will bear the following legend:
"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE NOVEMBER 4, 2008";

provided that subsequent to November 4, 2008 (that is, the date that is four months and one day after the Closing Date), the certificate representing such securities may be exchanged for a certificate not bearing this legend. 

In addition, the certificates representing the Common Shares issued as part of the Units will bear the following legend:

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"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT") OR APPLICABLE STATE SECURITIES LAWS.  THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, (B) TO THE CORPORATION, (C) IN ACCORDANCE WITH RULE 144 UNDER THE 1933 ACT, IF AVAILABLE, AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, (D) IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, IF AVAILABLE, OR (E) IN A TRANSACTION THAT DOES NOT OTHERWISE REQUIRE REGISTRATION UNDER THE 1933 ACT OR ANY APPLICABLE STATE SECURITIES LAWS IF AN OPINION OF COUNSEL, OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE CORPORATION, HAS BEEN PROVIDED TO THE CORPORATION TO THAT EFFECT.  THE SECURITIES REPRESENTED BY THE CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT AND OTHER APPLICABLE SECURITIES LAWS."

B.           Warrants Issued as Part of Units

You acknowledge that, in addition to the other legends that may be required by this Agreement, the certificates representing the Warrants issued as part of the Units will bear the following legend:
"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE NOVEMBER 4, 2008";

provided that subsequent to November 4, 2008 (that is, the date that is four months and one day after the Closing Date), the certificate representing such securities may be exchanged for a certificate not bearing this legend. 

In addition, the certificates representing the Warrants issued as part of the Units will bear the following legend:
"THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.   THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR UNLESS THE CORPORATION RECEIVES AN OPINION OF COUNSEL ACCEPTABLE TO THE CORPORATION STATING THAT SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE 1933 ACT.  THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT AND OTHER APPLICABLE SECURITIES LAWS."

"THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE 1933 ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE.  "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT."

C.           Warrant Shares Issued upon Exercise of Warrants

You acknowledge that, in addition to the other legends that may be required by this Agreement, the certificates representing any Warrant Shares issued upon exercise of Warrants on or before the date that is four months and one day from the date of Closing, will bear the following legend:

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"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE NOVEMBER 4, 2008";

provided that subsequent to November 4, 2008 (that is, the date that is four months and one day after the Closing Date), the certificate representing such securities may be exchanged for a certificate not bearing this legend. 

In addition, the certificates representing any Warrants Shares issued upon exercise of the Warrants before the Registration Statement is declared effective will bear the following legend:
"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT") OR APPLICABLE STATE SECURITIES LAWS.  THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, (B) TO THE CORPORATION, (C) IN ACCORDANCE WITH RULE 144 UNDER THE 1933 ACT, IF AVAILABLE, AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, (D) IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, IF AVAILABLE, OR (E) IN A TRANSACTION THAT DOES NOT OTHERWISE REQUIRE REGISTRATION UNDER THE 1933 ACT OR ANY APPLICABLE STATE SECURITIES LAWS IF AN OPINION OF COUNSEL, OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE CORPORATION, HAS BEEN PROVIDED TO THE CORPORATION TO THAT EFFECT.  THE SECURITIES REPRESENTED BY THE CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT AND OTHER APPLICABLE SECURITIES LAWS."

D.           Liquidated Damages Warrants

You acknowledge that, in addition to the other legends that may be required by this Agreement, the certificates representing the Liquidated Damages Warrants issued pursuant to the terms of this Agreement will bear the following legend: 
"THIS WARRANT [HAS] [AND IF THE REGISTRATION STATEMENT HAS NOT BECOME EFFECTIVE AT THE TIME OF ISSUANCE OF THE WARRANTS, ADD THE FOLLOWING: AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE] NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.   THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR UNLESS THE CORPORATION RECEIVES AN OPINION OF COUNSEL ACCEPTABLE TO THE CORPORATION STATING THAT SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE 1933 ACT.  THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT AND OTHER APPLICABLE SECURITIES LAWS."

"THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE 1933 ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE.  "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT."

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E.           Warrant Shares Issued upon Exercise of Liquidated Damages Warrants

You acknowledge that, in addition to the other legends that may be required by this Agreement, the certificates representing any Warrant Shares issued upon exercise of Liquidated Damages Warrants before the Registration Statement is declared effective will bear the following legend:
"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT") OR APPLICABLE STATE SECURITIES LAWS.  THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, (B) TO THE CORPORATION, (C) IN ACCORDANCE WITH RULE 144 UNDER THE 1933 ACT, IF AVAILABLE, AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, (D) IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, IF AVAILABLE, OR (E) IN A TRANSACTION THAT DOES NOT OTHERWISE REQUIRE REGISTRATION UNDER THE 1933 ACT OR ANY APPLICABLE STATE SECURITIES LAWS IF AN OPINION OF COUNSEL, OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE CORPORATION, HAS BEEN PROVIDED TO THE CORPORATION TO THAT EFFECT.  THE SECURITIES REPRESENTED BY THE CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT AND OTHER APPLICABLE SECURITIES LAWS."

7.           Representations and Warranties of the Corporation

The Corporation hereby agrees with you that the representations and warranties made by the Corporation in this Agreement shall be true and correct as of the Closing Date.  You shall be entitled to rely on, and benefit from, the representations, warranties and covenants made by the Corporation in this Agreement which shall survive the Closing and shall continue in full force and effect for your the benefit in accordance with the terms of this Agreement. The Corporation acknowledges and agrees that you shall be entitled to the benefits of the Registration Rights Agreement.

8.           Covenants of the Corporation

The Corporation hereby covenants and agrees with you as follows:
(a)         Corporate Status:  For a period of a least three years after the Closing Date the Corporation shall remain a corporation validly subsisting under the laws of its jurisdiction of incorporation, licensed, registered or qualified as an extra-provincial or foreign corporation in all jurisdictions where the character of its properties owned or leased or the nature of the activities conducted by it make such licensing, registration or qualification necessary and shall carry on its business in the ordinary course and in compliance in all material respects with all applicable laws, rules and regulations of each such jurisdiction.

(b)         Securities Filings:  Forthwith after the Closing the Corporation shall file such forms and documents as may be required under the Securities Laws of the Provinces of Canada and the United States and any state thereof relating to the offering of the Purchased Securities, the Liquidated Damages Warrants and the Warrant Shares (if any) which, without limiting the generality of the foregoing, shall include: (i) a Form 45-106-F1 as prescribed by NI 45-106; and (ii) a Form D as prescribed under the 1933 Act and any filings required under applicable state laws.

(c)         Performance of Acts:  The Corporation shall perform and carry out all of the acts and things to be completed by it as provided in this Agreement and the Registration Rights Agreement.

(d)         Use of Proceeds Amount:  The Corporation shall apply the proceeds of the Offered Securities to conduct further confirmation drilling at the Corporation's Goliad project, to advance the project through the permitting and development process and for general corporate purposes. 

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9.           Expenses

You acknowledge and agree that, except as set forth in the Registration Rights Agreement, all costs incurred by you (including any fees and disbursements and any special counsel retained by you) relating to the issue and sale to you of the Purchased Securities and if applicable, the Liquidated Damages Warrants and Warrant Shares, shall be borne by you. 

10.         General
(a)         Headings:  The division of this Agreement into articles and sections and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement.  The terms "this Agreement", "this Subscription Agreement", "hereof", "hereunder", "herein" and similar expressions refer to this Agreement and not to any particular article, section or other portion hereof and include any agreement supplemental thereto and any exhibits attached hereto.  Unless something in the subject matter or context is inconsistent therewith, reference herein to articles, sections and paragraphs are to articles, sections, subsections and paragraphs of this Agreement.

(b)         Number and Gender:  Words importing the singular number only shall include the plural and vice versa, words importing the masculine gender shall include the feminine gender and neuter and vice versa.

(c)         Severability:  If one or more of the provisions contained in this Agreement shall be invalid, illegal or unenforceable in any respect under any applicable law, the validity, legality or enforceability of the remaining provisions hereof shall not be affected or impaired thereby.  Each of the provisions of this Agreement is hereby declared to be separate and distinct.

(d)         Notices:  All notices or other communications to be given hereunder shall be delivered by hand or by fax, and if delivered by hand, shall be deemed to have been given on the date of delivery or, if sent by fax, on the date of transmission if sent before 5:00 p.m. and such day is a Business Day or, if not, on the first Business Day following the date of transmission.

(e)         Notices to the Corporation shall be addressed to:
Uranium Energy Corp.

9801 Anderson Mill Road, Suite 230, Austin, Texas, U.S.A., 78750

Attention:            Amir Adnani, President and Chief Executive Officer

Fax No.:              (512) 233-2531

Notices to you shall be addressed to the address of the Subscriber set out on the Execution Page hereof.

Either the Corporation or you may change the address for service thereof aforesaid by notice in writing to the other party hereto specifying the new address for service hereunder.

(f)         Further Assurances:  Each party hereto shall from time to time at the request of the other party hereto do such further acts and execute and deliver such further instruments, deeds and documents as shall be reasonably required in order to fully perform and carry out the provisions of this Agreement.  The parties hereto agree to act honestly and in good faith in the performance of their respective obligations hereunder.

(g)         Successors and Assigns:  Except as otherwise provided, this Agreement shall inure to the benefit of and shall be binding upon the parties hereto and their respective successors and permitted assigns.

(h)         Entire Agreement:  The terms of this Agreement express and constitute the entire agreement between the parties hereto with respect to the subject matter hereof and no implied term or liability of any kind is created or shall arise by reason of anything in this Agreement.

(i)         Time of Essence:  Time is of the essence of this Agreement.

(j)         Amendments:  The provisions of this Agreement may only be amended with the written consent of all of the parties hereto.

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(k)         Survival:  Notwithstanding any other provision of this Agreement, the representations, warranties, covenants and indemnities of or by you or the Corporation contained herein or in any certificate, document or instrument delivered pursuant hereto shall survive the completion of the transactions contemplated by this Agreement.

(l)         Governing Law:  This Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein and the parties hereto irrevocably attorn to the jurisdiction of the courts of the Province of British Columbia.

(m)         Counterparts:  This Agreement may be executed in two or more counterparts which when taken together shall constitute one and the same agreement.  Delivery of counterparts may be effected by facsimile transmission thereof.

(n)         Facsimile Copies:  The Corporation shall be entitled to rely on a facsimile copy of an executed Subscription Agreement and acceptance by the Corporation of such facsimile subscription shall be legally effective to create a valid and binding agreement between you and the Corporation in accordance with the terms thereof.

(o)         Currency:  All references to dollars or "$" shall refer to United States dollars unless otherwise provided.  

If the foregoing is in accordance with your understanding, please sign and return this Agreement together with the other required documents signifying your agreement to purchase the Purchased Securities.

__________

 

 

Schedule "A"

TERM SHEET

Uranium Energy Corp.

Private Placement Offering of Securities

	
Issuer:
	
Uranium Energy Corp. (the "Corporation").

	
Issue:
	
Up to 4,166,667 units (each a "Unit") of the Corporation.  Each Unit shall consist of one share of common stock of the Company (each a "Common Share") and one-half of one transferable share purchase warrant (each a "Warrant") to purchase one additional Common Share (each a "Warrant Share") at an exercise price of US$3.10 per Warrant Share, expiring at 5:00 p.m. (Vancouver, British Columbia, time) on the date that is two years from the Closing Date.

	
Issue Price:
	
US$2.40 per Unit.

	
Issue Size:
	
Up to approximately US$10.0 million.

	
Currency:
	
United States dollars, unless otherwise indicated.

	
Use of Proceeds:
	
The net proceeds of the offering will be used to conduct further confirmation drilling at the Corporation's Goliad project, to advance the project through the permitting and development process and for general corporate purposes.

	
Offering Procedure:
	
The Units will be offered by private placement basis pursuant to subscription agreements. The Units may be offered in each of the provinces of Canada, in the United States and in Europe under applicable private placement exemptions.

A Registration Statement on Form S-1 (the "Registration Statement") will be filed by the Corporation with the United States Securities and Exchange Commission (the "SEC") in accordance with the requirements described below to register under the United States Securities Act of 1933, as amended, (the "1933 Act") resales of the Common Shares (including the Warrant Shares), from time to time, by the initial purchasers and their permitted ensigns and transferees (on a secondary basis and not as a primary offering by the Corporation).

	
Resale Restrictions Under U.S. Securities Laws:
	
The Common Shares (including the Warrant Shares) will be under resale restrictions until such time as the Registration Statement has been declared effective by the SEC.

	
Resale Restrictions Under Canadian Securities Laws:
	
The Common Shares (including the Warrant Shares) will be under resale restrictions until four months and one day from the closing of the offering.

	
Registration Rights:
	
The Corporation agrees to file the Registration Statement within 30 days following the closing of the offering and to use its reasonable best efforts to have the Registration Statement declared effective by the SEC within three months from the closing of the offering and, in the event that the Registration Statement is not declared effective by that date, or if the effectiveness of the Registration Statement is not maintained by the Corporation, to issue common stock share purchase warrants of the Corporation, as liquidated damages, entitling each subscriber to acquire shares of common stock (each a "Warrant Share") in the capital of the Corporation equal to one one-hundredth of a warrant (the "Liquidated Damages Warrants") for each US$1.00 in aggregate funds paid by each subscriber of the Offering for each 30 calendar day period (or partial period thereof) during which the Registration Statement is not effective, after the expiry of the three month period until the registration default is cured; provided that the maximum number of common shares issuable in connection with the Offering (including Warrant Shares issuable upon exercise of the Warrants and the Liquidated Damages Warrants) shall not exceed 19.9% of the Corporation's issued and outstanding share capital unless shareholder approval has been obtained.  The Registration Rights Agreement shall contain such other terms as are customary in transactions of this nature.

	
Stock Exchange Listing: 
	
American Stock Exchange.

	
Closing Date:
	
On or about July 3, 2008.

__________

Schedule "B"

CERTIFICATE OF ACCREDITED INVESTOR STATUS UNDER NI 45-106

TO:                      Uranium Energy Corp.

In connection with the purchase of units (each unit consisting of one common share and one-half of one transferable share purchase warrant, which units are hereinafter referred to as the "Purchased Securities") of Uranium Energy Corp. (the "Corporation"), the undersigned hereby represents, warrants and certifies that:

	
(a)
	
the Subscriber (the undersigned or, if the undersigned is purchasing the Purchased Securities as agent on behalf of a disclosed beneficial purchaser, such beneficial purchaser being referred to herein as the "Subscriber") is resident in a province of Canada or a jurisdiction other than the United States or is subject to the securities laws of a province of Canada;

	
(b)
	
the Subscriber is purchasing the Purchased Securities as principal or is deemed under National Instrument 45-106 - Prospectus and Registration Exemptions of the Canadian Securities Administrators ("NI 45-106") to be purchasing the Purchased Securities as principal; and 

	
(c)
	
the Subscriber is an "accredited investor" within the meaning of NI 45-106, by virtue of satisfying the indicated criterion as set out in Appendix 1 to this certificate (YOU MUST ALSO INITIAL OR PLACE A CHECK-MARK ON THE APPROPRIATE LINE IN APPENDIX 1 ATTACHED TO THIS CERTIFICATE);

	
The above representations and warranties will be true and correct both as of the execution of this certificate and as of the closing time of the purchase and sale of the Purchased Securities and acknowledges that they will survive the completion of the issue of the Purchased Securities.

	
The undersigned acknowledges that the foregoing representations and warranties are made by the undersigned with the intent that they be relied upon in determining the suitability of the Subscriber as a purchaser of the Purchased Securities and that this certificate is incorporated into and forms part of the Subscription Agreement and the undersigned undertakes to immediately notify the Corporation of any change in any statement or other information relating to the Subscriber set forth herein which takes place prior to the closing time of the purchase and sale of the Purchased Securities.

               Dated: ________________________, 2008.
_________________________________________________

Print name of Subscriber (or person signing as agent)

By:______________________________________________

     Signature

     ______________________________________________

     Title

     ______________________________________________

     (Please print name of individual whose signature appears 

     above, if different from name of Subscriber or agent 

     printed above)

__________

Appendix 1 to Schedule "B"

NOTE:  THE SUBSCRIBER MUST INITIAL BESIDE THE APPLICABLE PORTION OF THE DEFINITION BELOW.

Accredited Investor - (defined in NI 45-106) means:

	
__________
	
(a)
	
a Canadian financial institution or an authorized foreign bank named in Schedule III of the Bank Act (Canada),

	
__________
	
(b)
	
the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada),

	
__________
	
(c)
	
a subsidiary of any person referred to in paragraph (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary,

	
__________
	
(d)
	
a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador),

	
__________
	
(e)
	
an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d),

	
__________
	
(f)
	
the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly-owned entity of the Government of Canada or a jurisdiction of Canada,

	
__________
	
(g)
	
a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'île de Montréal or an intermunicipal management board in Quebec,

	
__________
	
(h)
	
any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government,

	
__________
	
(i)
	
a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada) or a pension commission or similar regulatory authority of a jurisdiction of Canada,

	
__________
	
(j)
	
an individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds CDN$1,000,000,

	
__________
	
(k)
	
an individual whose net income before taxes exceeded CDN$200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded CDN$300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year,

	
__________
	
(l)
	
an individual who, either alone or with a spouse, has net assets of at least CDN$5,000,000,

	
__________
	
(m)
	
a person, other than an individual or investment fund, that has net assets of at least CDN$5,000,000 as shown on its most recently prepared financial statements,

	
__________
	
(n)
	
an investment fund that distributes or has distributed its securities only to

	 	
(i)
	
a person that is or was an accredited investor at the time of the distribution,

	 	
(ii)
	
a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [Minimum amount investment] and 2.19 [Additional investment in investment funds] of NI 45-106, or

- 2 -

 

	 	
(iii)
	
a person described in paragraph (i) or (ii) immediately above that acquires or acquired securities under section 2.18 [Investment fund reinvestment] of NI 45-106,

	
__________
	
(o)
	
an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Quebec, the securities regulatory authority, has issued a receipt,

	
__________
	
(p)
	
a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be,

	
__________
	
(q)
	
a person acting on behalf of a fully managed account managed by that person, if that person

	 	
(i)
	
is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction, and

	 	
(ii)
	
in Ontario, is purchasing a security that is not a security of an investment fund,

	
__________
	
(r)
	
a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded,

	
__________
	
(s)
	
an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function,

	
__________
	
(t)
	
a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors,

	
__________
	
(u)
	
an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser, or

	
__________
	
(v)
	
a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Quebec, the regulator as:

	 	
(i)
	
an accredited investor, or

	 	
(ii)
	
an exempt purchaser in British Columbia or Alberta.

For the purposes hereof:

	
(a)
	
"Canadian financial institution" means

	 	
(i)
	
an association governed by the Cooperative Credit Associations Act (Canada) or a central cooperative credit society for which an order has been made under section 473(1) of the Cooperative Credit Associations Act (Canada), or

	 	
(ii)
	
a bank, loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative, or league that, in each case, is authorized by an enactment of Canada or a jurisdiction of Canada to carry on business in Canada or a jurisdiction of Canada;

	
(b)
	
"control person" has the meaning ascribed to that term in securities legislation except in Manitoba, Ontario, Quebec, Nova Scotia, Newfoundland and Labrador, Prince Edward Island, the Northwest Territories and Nunavut where "control person" means any person that holds or is one of a combination of persons that hold

- 3 -

 

	 	
(i)
	
a sufficient number of any of the securities of an issuer so as to affect materially the control of the issuer, or

	 	
(ii)
	
more than 20% of the outstanding voting securities of an issuer except where there is evidence showing that the holding of those securities does not affect materially the control of that issuer;

	
(c)
	
"eligibility adviser" means

	 	
(i)
	
a person that is registered as an investment dealer or in an equivalent category of registration under the securities legislation of the jurisdiction of a Subscriber and authorized to give advice with respect to the type of security being distributed, and

	 	
(ii)
	
in Saskatchewan or Manitoba, also means a lawyer who is a practising member in good standing with a law society of a jurisdiction of Canada or a public accountant who is a member in good standing of an institute or association of chartered accountants, certified general accountants or certified management accountants in a jurisdiction of Canada provided that the lawyer or public accountant must not:

	 	
(A)
	
have a professional, business or personal relationship with the issuer, or any of its directors, executive officers, founders or control persons, and

	 	
(B)
	
have acted for or been retained personally or otherwise as an employee, executive officer, director, associate or partner of a person that has acted for or been retained by the issuer or any of its directors, executive officers, founders or control persons within the previous 12 months;

	
(d)
	
"executive officer" means, for an issuer, an individual who is

	 	
(i)
	
a chair, vice-chair or president,

	 	
(ii)
	
a vice-president in charge of a principal business unit, division or function including sales, finance or production,

	 	
(iii)
	
an officer of the issuer or any of its subsidiaries and who performs a policy-making function in respect of the issuer, or

	 	
(iv)
	
performing a policy-making function in respect of the issuer;

	
(e)
	
"financial assets" means (i) cash, (ii) securities or (iii) a contract of insurance, a deposit or an evidence of a deposit that is not a security for the purposes of securities legislation;

	
(f)
	
"founder" means, in respect of an issuer, a person who,

	 	
(i)
	
acting alone, in conjunction or in concert with one or more persons, directly or indirectly, takes the initiative in founding, organizing or substantially reorganizing the business of the issuer, and

	 	
(ii)
	
at the time of the trade is actively involved in the business of the issuer;

	
(g)
	
"fully managed account" means an account of a client for which a person makes the investment decisions if that person has full discretion to trade in securities for the account without requiring the client's express consent to a transaction;

	
(h)
	
"investment fund" has the meaning ascribed thereto in National Instrument 81-106 - Investment Fund Continuous Disclosure;

	
(i)
	
"person" includes 

	 	
(i)
	
an individual,

	 	
(ii)
	
a corporation,

	 	
(iii)
	
a partnership, trust, fund and association, syndicate, organization or other organized group of persons, whether incorporated or not, and

	 	
(iv)
	
an individual or other person in that person's capacity as a trustee, executor, administrator or personal or other legal representative; 

- 4 -

 

	
(j)
	
"related liabilities" means 

	 	
(i)
	
liabilities incurred or assumed for the purpose of financing the acquisition or ownership of financial assets, or

	 	
(ii)
	
liabilities that are secured by financial assets.

	
(k)
	
"spouse" means, an individual who, 

	 	
(i)
	
is married to another individual and is not living separate and apart within the meaning of the Divorce Act (Canada), from the other individual, 

	 	
(ii)
	
is living with another individual in a marriage-like relationship, including a marriage-like relationship between individuals of the same gender, or

	 	
(iii)
	
in Alberta, is an individual referred to in paragraph (i) or (ii) immediately above or is an adult interdependent partner within the meaning of the Adult Interdependent Relationships Act (Alberta); and

	
(l)
	
"subsidiary" means an issuer that is controlled directly or indirectly by another issuer and includes a subsidiary of that subsidiary.

	
Affiliated Entities and Control 

	
1.
	
An issuer is considered to be an affiliate of another issuer if one of them is the subsidiary of the other, or if each of them is controlled by the same person.

	
2.
	
A person (first person) is considered to control another person (second person) if

	 	
(a)
	
the first person, directly or indirectly, beneficially owns or exercises control or direction over securities of the second person carrying votes which, if exercised, would entitle the first person to elect a majority of the directors of the second person, unless the first person holds the voting securities only to secure an obligation,

	 	
(b)
	
the second person is a partnership, other than a limited partnership, and the first person holds more than 50% of the interests in the partnership, or

	 	
(c)
	
the second person is a limited partnership and the general partner of the limited partnership is the first person.

__________

Schedule "C"

CERTIFICATE FOR U.S. ACCREDITED INVESTORS

TO:                     Uranium Energy Corp.

In connection with the purchase by the undersigned subscriber (the "Subscriber") of units (each unit consisting of one common share and one-half of one transferable share purchase warrant, which units are hereinafter referred to as the "Purchased Securities") of Uranium Energy Corp. (the "Corporation"), the Subscriber hereby represents, warrants, covenants and certifies that the undersigned (or any beneficial purchaser on whose behalf it is acting) is a U.S. Subscriber (as such term is defined in the Subscription Agreement to which this Certificate is attached) and satisfies one or more of the categories indicated below (please initial the appropriate line below): 

	 	
501(a)(1)
	
a bank as defined in Section 3(a)(2) of the United States Securities Act of 1933 (the "1933 Act"), or a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the 1933 Act whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the United States Securities Exchange Act of 1934, as amended; any insurance company as defined in Section 2(a)(13) of the 1933 Act; any investment company registered under the United States Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; any Small Business Investment Company licensed by the United States Small Business Administration under Section 301(c) or (d) of the United States Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of US$5,000,000; any employee benefit plan within the meaning of the United States Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of US$5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are U.S. Accredited Investors;

	 	
501(a)(2)
	
any private business development company as defined in Section 202(a)(22) of the United States Investment Advisers Act of 1940;

	 	
501(a)(3)
	
an organization described in section 501(c)(3) of the United States Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the Purchased Securities, with total assets in excess of US$5,000,000; or

	 	
501(a)(7)
	
a trust that (a) has total assets in excess of US$5,000,000, (b) was not formed for the specific purpose of acquiring the Purchased Securities, and (c) is directed in its purchase of securities by a sophisticated person, being defined as a person who has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the prospective investment.

                Dated: ________________________, 2008.
____________________________________________

Print name of Subscriber (or person signing as agent)

By:_________________________________________

     Signature

     _________________________________________

     Title

     _________________________________________

     (Please print name of individual whose signature

     appears above, if different from name of Subscriber or 

     agent printed above)

__________

End of Subscription Agreement

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