Document:

Exhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

 

THIS AGREEMENT is made as of
the 13th day of May, 2008, by and between Uranium Resources, Inc. (the “Company”),
a corporation organized under the laws of the State of Delaware, with its
principal offices at 405 State Highway 121 Bypass, Building A, Suite 110,
Lewisville, Texas 75067, and the purchaser whose name and address is set forth
on the signature page hereof (the “Purchaser”).

 

IN CONSIDERATION of the
mutual covenants contained in this Agreement, the Company and the Purchaser
agree as follows:

 

SECTION 1.           Authorization of Sale of the
Securities.  Subject to the terms and
conditions of this Agreement, the Company has authorized the issuance and sale
of up to 3,456,221 shares (the “Shares”) of common stock, par value
$0.001 per share (the “Common Stock”), of the Company, that number of
warrants to purchase shares of Common Stock (the “Warrants,” each
representing the right to purchase one share of Common Stock (the “Warrant
Shares”), which is equal to 30% of such number of Shares, and one warrant
to purchase the number of shares of Common Stock (the “Ratchet Warrant
Shares”) specified in such Warrant (the “Ratchet Warrant,” and
together with the Shares and the Warrants, the “Securities”).

 

SECTION 2.           Agreement to Sell and Purchase the
Securities.  At the Closing (as
defined in Section 3), the Company will, subject to the terms of this
Agreement, issue and sell to the Purchaser and the Purchaser will buy from the
Company, upon the terms and conditions hereinafter set forth, the number of
Securities as shown below such Purchaser’s name on the signature page hereto,
for the aggregate purchase price set forth on the signature page hereto.

 

The Company proposes to
enter into this same form of purchase agreement, the terms of which shall be no
more favorable to the Other Purchasers than the terms set forth herein, with
certain other investors (the “Other Purchasers”), and expects to
complete sales of shares of Common Stock and warrants to purchase shares of
Common Stock to them.  The Purchaser and
the Other Purchasers are hereinafter sometimes collectively referred to as the “Purchasers,”
and this Agreement and the purchase agreements executed by the Other Purchasers
are hereinafter sometimes collectively referred to as the “Agreements.”  The term “Placement Agent” shall mean
Oppenheimer & Co. Inc.

 

SECTION 3.           Delivery of the Securities at the
Closing.  The completion of the
purchase and sale of the Securities (the “Closing”) shall occur at the
offices of Morrison & Foerster LLP, 1290 Avenue of the Americas, New
York, New York 10104 as soon as practicable and as agreed to by the parties
hereto, within three business days following the execution of the Agreements,
or on such later date or at such different location as the parties shall agree
in writing, but not prior to the date that the conditions for Closing set forth
below have been satisfied or waived by the appropriate party (the “Closing
Date”).

 

At the Closing, the
Purchaser shall deliver, in immediately available funds, the full amount of the
purchase price for the Securities being purchased hereunder by wire transfer to
an account designated by the Company and the Company shall deliver to the
Purchaser one or more

 

 

stock certificates and one or
more warrant certificates registered in the name of the Purchaser, or in such
nominee name(s) as designated by the Purchaser in writing, representing
the number of Securities set forth on the signature page hereto and
bearing an appropriate legend referring to the fact that the Securities were
sold in reliance upon the exemption from registration under the Securities Act
of 1933, as amended (the “Securities Act”), provided by Section 4(2) thereof
and Rule 506 thereunder. The Company will, at its expense, promptly
substitute one or more replacement certificates without the legend upon the
earlier of the date each Registration Statement becomes effective or one year
from the Closing Date.  The name(s) in
which the certificates are to be registered are set forth in the Securities
Certificate Questionnaire attached hereto as part of Appendix I.

 

The Company’s obligation to
complete the purchase and sale of the Securities and deliver such stock
certificate(s) and warrant certificate(s) to the Purchaser at the
Closing shall be subject to the following conditions, any one or more of which
may be waived by the Company:  (a) receipt
by the Company of same-day funds in the full amount of the purchase price for
the Securities being purchased hereunder; (b) completion of the purchases
and sales under the Agreements with the Other Purchasers; and (c) the
accuracy of the representations and warranties made by the Purchasers and the
fulfillment of those undertakings of the Purchasers to be fulfilled prior to
the Closing.

 

The Purchaser’s obligation
to accept delivery of such stock certificate(s) and warrant certificate(s) and
to pay for the Securities evidenced thereby shall be subject to the following
conditions:  (a) each of the
representations and warranties of the Company made herein shall be accurate as
of the Closing Date; (b) the delivery to the Purchaser by counsel to the
Company of a legal opinion in a form reasonably satisfactory to counsel to the
Placement Agent; (c) receipt by the Purchaser of a certificate executed by
the chief executive officer and the chief financial or accounting officer of
the Company, dated as of the Closing Date, to the effect that the
representations and warranties of the Company set forth herein are true and
correct as of the date of this Agreement and as of such Closing Date and that
the Company has complied with all the agreements and satisfied all the
conditions herein on its part to be performed or satisfied on or prior to such
Closing Date; (d) receipt by the Purchaser of a copy of a good standing
certificate for the Company and each of its Subsidiaries, (e) receipt by
the Purchaser of a letter from the Company’s transfer agent certifying as to
the number of outstanding shares; (f) the listing, and the filing of any
documents required to effectuate such listing, of the Shares and Warrant Shares
on the NASDAQ Global Market, and (g) the fulfillment in all material
respects of those undertakings of the Company to be fulfilled prior to the
Closing.  The Purchaser’s obligations
hereunder are expressly not conditioned on the purchase by any or all of the
Other Purchasers of the Securities that they have agreed to purchase from the
Company.

 

SECTION 4.           Representations, Warranties and
Covenants of the Company.  The
Company hereby represents and warrants to, and covenants with, the Purchaser as
follows:

 

4.1                Organization and
Qualification.  The Company is a
corporation duly incorporated, validly existing and in good standing under the
laws of its jurisdiction of incorporation and the Company is qualified to do
business as a foreign corporation in each jurisdiction in which qualification
is required, except where failure to so qualify would not have

 

 

a Material Adverse Effect (as
defined herein).  The Company’s
subsidiaries (each a “Subsidiary” and collectively the “Subsidiaries”)
are listed on Exhibit A to this Agreement.  Each Subsidiary is a direct or indirect
wholly owned subsidiary of the Company. 
Each Subsidiary is duly organized, validly existing and in good standing
under the laws of its jurisdiction of incorporation and is qualified to do
business as a foreign corporation in each jurisdiction in which qualification
is required, except where failure to so qualify would not have a Material
Adverse Effect.

 

4.2                Reporting Company; Form S-3.  The Company is not an “ineligible issuer” (as
defined in Rule 405 promulgated under the Securities Act) and is eligible
to register the Shares for resale by the Purchaser on a registration statement
on Form S-3 under the Securities Act. The Company is subject to the
reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and has timely filed all reports required thereby.  Provided none of the Purchasers is deemed to
be an underwriter with respect to any shares, to the Company’s knowledge, there
exist no facts or circumstances (including without limitation any required
approvals or waivers or any circumstances that may delay or prevent the
obtaining of accountant’s consents) that reasonably could be expected to
prohibit or delay the preparation and filing of registration statements on Form S-3
that will be available for the resale of the Shares, Warrant Shares and the
Ratchet Warrant Shares by the Purchaser.

 

4.3                Authorized Capital Stock.  The Company had duly authorized and validly
issued outstanding capitalization as set forth under the heading “Capitalization”
in the confidential Private Placement Memorandum dated April 15, 2008
prepared by the Company (including all exhibits, supplements and amendments
thereto, the “Private Placement Memorandum”) as of the date set forth
therein; the issued and outstanding shares of Common Stock have been duly
authorized and validly issued, are fully paid and nonassessable, have been
issued in compliance with all federal and state securities laws, were not issued
in violation of or subject to any preemptive rights or other rights to
subscribe for or purchase securities, and conform in all material respects to
the description thereof contained in the Private Placement Memorandum.  The Company does not have outstanding any
options to purchase Common Stock other than with respect to options to purchase
Common Stock issued pursuant to the Company’s stock option plans and deferred
compensation plans in effect on the date hereof, as described in the “Securities
Authorized for Issuance Under Equity Compensation Plans” section of the Company’s  Annual Report on Form 10-K/A for the
fiscal year ended December 31, 2007 filed with the U.S. Securities and
Exchange Commission on April 10, 2008 (the “2007 Form 10-K/A”).  The issuance of the Shares, Warrants and
Ratchet Warrants will not trigger the anti-dilution provisions or any
obligation to reset the exercise price with respect to any outstanding security
and the Company does not have outstanding any preemptive rights or other rights
to subscribe for or to purchase, any securities or obligations convertible into,
or any contracts or commitments to issue or sell, shares of its capital stock
or any such rights, convertible securities or obligations.  With respect to each of the Subsidiaries (i) all
the issued and outstanding shares of such Subsidiary’s capital stock have been
duly authorized and validly issued, are fully paid and nonassessable, are owned
free and clear of any security interests, liens, encumbrances, equities or
claims, have been issued in compliance with all federal and state securities
laws, were not issued in violation of or subject to any preemptive rights or
other rights to subscribe for or purchase securities, and (ii) there are
no outstanding options to purchase, or any preemptive rights or other rights to
subscribe for or to purchase, any securities or obligations convertible

 

 

into, or any contracts or
commitments to issue or sell, shares of such Subsidiary’s capital stock or any
such options, rights, convertible securities or obligations.

 

4.4                Issuance, Sale and Delivery
of the Securities.  The certificates
evidencing the Shares and the Warrants are in due and proper legal form and
have been duly authorized for issuance by the Company.  The Shares have been duly authorized and,
when issued, delivered and paid for in the manner set forth in this Agreement,
will be validly issued, fully paid and nonassessable, will be issued free and
clear of any security interests, liens, encumbrances, equities or claims, and
will conform in all material respects to the description thereof set forth in
the Private Placement Memorandum.  The
Company has reserved from its duly authorized capital stock the maximum number
of shares of Common Stock issuable upon exercise of the Warrants.  The Warrants have been duly authorized and,
when issued, delivered and paid for in the manner set forth in this Agreement,
will be validly issued, fully paid and nonassessable, will be issued free and
clear of any security interests, liens, encumbrances, equities or claims, and
will conform in all material respects to the description thereof set forth in
the Private Placement Memorandum.  The
Warrant Shares and the Ratchet Warrant Shares, when issued and delivered upon
exercise of the Warrants in accordance with their terms, will be duly
authorized, validly issued, fully paid and nonassessable and will be free and
clear of any security interests, liens, encumbrances, equities or claims.  No preemptive rights or other rights to
subscribe for or purchase any shares of Common Stock of the Company exist with
respect to the issuance and sale of the Securities by the Company pursuant to
this Agreement.  No stockholder of the
Company has any right (which has not been waived or has not expired by reason of
lapse of time following notification of the Company’s intention to file the
Registration Statements (as hereinafter defined)) to require the Company to
register the sale of any capital stock owned by such stockholder under the
Registration Statements.  No further
approval or authority of the stockholders or the Board of Directors of the
Company will be required for the issuance and sale of the Securities to be sold
by the Company as contemplated herein.

 

4.5                Due Execution, Delivery and
Performance of the Agreement and the Warrants.  The Company has full legal right, corporate
power and authority to enter into this Agreement and perform the transactions
contemplated hereby.  This Agreement and
the Warrants have been duly authorized, executed and delivered by the
Company.  This Agreement and the Warrants
constitute legal, valid and binding agreements of the Company, enforceable
against the Company in accordance with their respective terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other laws of general application relating to or
affecting the enforcement of creditors’ rights and the application of equitable
principles relating to the availability of remedies, and except as rights to
indemnity or contribution, including but not limited to, indemnification
provisions set forth in Section 7.3 of this Agreement may be limited by
federal or state securities law or the public policy underlying such laws.  The execution and performance of this
Agreement and the Warrants by the Company and the consummation of the
transactions herein contemplated will not violate any provision of the
certificate of incorporation or bylaws of the Company or the organizational
documents of any Subsidiary and will not result in the creation of any lien,
charge, security interest or encumbrance upon any assets of the Company or any
Subsidiary pursuant to the terms or provisions of, or will not conflict with,
result in the breach or violation of, or constitute, either by itself or upon
notice or the passage of time or both, a default under any agreement, mortgage,
deed of trust, lease, franchise, license, indenture, permit or other

 

 

instrument to which any of the
Company or any Subsidiary is a party or by which any of the Company or any
Subsidiary or their respective properties may be bound or affected and in each
case that would have a Material Adverse Effect or any statute or any
authorization, judgment, decree, order, rule or regulation of any court or
any regulatory body, administrative agency or other governmental agency or body
applicable to the Company or any Subsidiary or any of their respective
properties.  No consent, approval,
authorization or other order of any court, regulatory body, administrative
agency or other governmental agency or body is required for the execution and
delivery of this Agreement or the Warrants or the consummation of the
transactions contemplated by this Agreement, except for compliance with the
Blue Sky laws and federal securities laws applicable to the offering of the
Securities.  For the purposes of this
Agreement the term  “Material Adverse
Effect” shall mean a material adverse effect on the condition (financial or
otherwise), properties, business, prospects or results of operations of the Company
or any significant Subsidiary.

 

4.6                Accountants. Hein &
Associates LLP, who has expressed its opinion with respect to the consolidated
financial statements contained in the 2007 Form 10-K/A, which is attached
as an exhibit to, and made a part of the Private Placement Memorandum and
incorporated by reference into the Registration Statements and the Prospectuses
(as defined herein) that forms a part thereof, are registered independent
public accountants as required by the Securities Act and the rules and
regulations promulgated thereunder (the “1933 Act Rules and Regulations”)
and by the rules of the Public Accounting Oversight Board.

 

4.7                No Defaults or Consents.
Neither the execution, delivery and performance of this Agreement by the
Company nor the consummation of any of the transactions contemplated hereby
(including, without limitation, the issuance and sale by the Company of the
Securities) will give rise to a right to terminate or accelerate the due date
of any payment due under, or conflict with or result in the breach of any term
or provision of, or constitute a default (or an event which with notice or
lapse of time or both would constitute a default) under, except such defaults
that individually or in the aggregate would not cause a Material Adverse
Effect, or require any consent or waiver under, or result in the execution or
imposition of any lien, charge or encumbrance upon any properties or assets of
the Company or its Subsidiaries pursuant to the terms of, any indenture,
mortgage, deed of trust or other agreement or instrument to which the Company
or any of its Subsidiaries is a party or by which either the Company or its
Subsidiaries or any of their properties or businesses is bound, or any
franchise, license, permit, judgment, decree, order, statute, rule or
regulation applicable to the Company or any of its Subsidiaries or violate any
provision of the charter or by-laws of the Company or any of its Subsidiaries,
except for such consents or waivers which have already been obtained and are in
full force and effect.

 

4.8                Contracts.  The material contracts to which the Company
is a party have been duly and validly authorized, executed and delivered by the
Company and constitute the legal, valid and binding agreements of the Company,
enforceable by and against it in accordance with their respective terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws relating to enforcement of creditors’
rights generally, and general equitable principles relating to the availability
of remedies, and except as rights to indemnity or contribution may be limited
by federal or state securities laws and the public policy underlying such
laws.  No default exists, and no event
has occurred which with notice or lapse of time or both would constitute a
default, in the due

 

 

performance and observance of
any term, covenant or condition, by the Company of any material contract to
which the Company is a party or by which the Company or its property or business
may be bound or affected which default or event, individually or in the
aggregate, would have a Material Adverse Effect.  To the Company’s knowledge, no default
exists, and no event has occurred which with notice or lapse of time or both
would constitute a default, in the due performance and observance of any term,
covenant or condition, by any of the Company’s counterparties to any material
contract, which default or event, individually or in the aggregate, would have
a Material Adverse Effect.

 

4.9                No Actions.  Except as set forth on Exhibit B,
there are no legal or governmental actions, suits or proceedings pending or, to
the Company’s knowledge, threatened against the Company or any Subsidiary
before or by any court, regulatory body or administrative agency or any other
governmental agency or body, domestic, or foreign, which actions, suits or
proceedings, individually or in the aggregate, might reasonably be expected to
have a Material Adverse Effect, and none of the Company or any Subsidiary is aware
of any facts or conditions that could form a reasonable basis for any such
action, suit or proceeding; and no labor disturbance by the employees of the
Company exists or is imminent, that might reasonably be expected to have a
Material Adverse Effect.  Neither the
Company nor any Subsidiary is a party to or subject to the provisions of any
injunction, judgment, decree or order of any court, regulatory body,
administrative agency or other governmental agency or body that might have a
Material Adverse Effect.

 

4.10              Properties.  The Company and each Subsidiary has good and
marketable title to all the properties and assets described as owned by it in
the consolidated financial statements included in the Private Placement
Memorandum, free and clear of all liens, mortgages, pledges, or encumbrances of
any kind except (i) those, if any, reflected in such consolidated
financial statements, or (ii) those that are not material in amount and do
not adversely affect the use made and proposed to be made of such property by
the Company or its Subsidiaries.  The
Company and each Subsidiary holds its leased properties under valid and binding
leases, the Company and any Subsidiary owns or leases all such properties as
are necessary to its operations as now conducted.

 

4.11              No Material Adverse Change.  Since December 31, 2007 (i) the
Company and its Subsidiaries have not incurred any material liabilities or
obligations, indirect, or contingent, or entered into any material agreement or
other transaction that is not in the ordinary course of business or that could
reasonably be expected to result in a material reduction in the future earnings
of the Company; (ii) the Company and its Subsidiaries have not sustained
any material loss or interference with their businesses or properties from
fire, flood, windstorm, accident or other calamity not covered by insurance; (iii) the
Company and its Subsidiaries have not paid or declared any dividends or other
distributions with respect to their capital stock and none of the Company or any
Subsidiary is in default in the payment of principal or interest on any
outstanding debt obligations; (iv) there has not been any change in the
capital stock of the Company or its Subsidiaries other than the sale of the
Securities hereunder and shares or options issued pursuant to employee equity
incentive plans or purchase plans approved by the Company’s Board of Directors,
or indebtedness material to the Company or its Subsidiaries (other than in the
ordinary course of business and any required scheduled payments); and

 

 

(v) there has not occurred
any event that has caused or could reasonably be expected to cause a Material
Adverse Effect.

 

4.12              Intellectual Property.  The Company owns, is licensed or otherwise
possesses all rights to use, all patents, patent rights, inventions, know-how
(including trade secrets and other unpatented or unpatentable or confidential
information, systems, or procedures), trademarks, service marks, trade names,
copyrights and other intellectual property rights (collectively, the “Intellectual
Property”) necessary for the conduct of its business as described in the
Private Placement Memorandum.  No claims
have been asserted against the Company by any person with respect to the use of
any such Intellectual Property or challenging or questioning the validity or
effectiveness of any such Intellectual Property.

 

4.13              Compliance.  Except as set forth on Exhibit B,
none of the Company or its Subsidiaries has been advised, nor do any of them
have any reason to believe, that it is not conducting business in compliance
with all applicable laws, rules and regulations of the jurisdictions in
which it is conducting business, including, without limitation, all applicable
local, state and federal environmental, mining and health and safety laws and
regulations, except where failure to be so in compliance would not have a
Material Adverse Effect.

 

4.14              Taxes.  The Company and each Subsidiary has filed on
a timely basis (giving effect to extensions) all required federal, state and
foreign income and franchise tax returns and has paid or accrued all taxes
shown as due thereon, and none of the Company or any subsidiary has knowledge
of a tax deficiency that has been or might be asserted or threatened against it
that could have a Material Adverse Effect. 
All tax liabilities accrued through the date hereof have been adequately
provided for on the books of the Company. 
There are no tax audits or investigations pending, which, if adversely
determined would have a Material Adverse Effect; nor, to the Company’s
knowledge, are there any material proposed tax assessments against the Company
or any of its Subsidiaries.

 

4.15              Transfer Taxes.  On the Closing Date, all stock transfer or
other taxes (other than income taxes) that are required to be paid in connection
with the sale and transfer of the Securities to be sold to the Purchaser
hereunder will have been, fully paid or provided for by the Company and all
laws imposing such taxes will have been fully complied with.

 

4.16              Investment Company.  The Company is not and, after giving effect
to the offering and sale of the Securities and the application of the proceeds
thereof as described in the Private Placement Memorandum, will not be an “investment
company” or an “affiliated person” of, or “promoter” or “principal underwriter”
for an investment company, within the meaning of the Investment Company Act of
1940, as amended, and the rules and regulations of the Commission
promulgated thereunder.

 

4.17              Offering Materials.  None of the Company, its directors or
officers has distributed and will not distribute prior to the Closing Date any
offering material, including any “free writing prospectus” (as defined in Rule 405
promulgated under the Securities Act), in connection with the offering and sale
of the Securities other than the Private Placement Memorandum or any amendment
or supplement thereto.  The Company has
not in the past nor

 

 

will it hereafter take any
action independent of the Placement Agent to sell, offer for sale or solicit
offers to buy any securities of the Company that could result in the initial
sale of the Securities not being exempt from the registration requirements of Section 5
of the Securities Act.

 

4.18              Insurance.  The Company maintains insurance underwritten
by insurers of recognized financial responsibility, of the types and in the
amounts that the Company reasonably believes is adequate for its business,
including, but not limited to, insurance covering all real and personal
property owned or leased by the Company against theft, damage, destruction,
acts of vandalism and all other risks customarily insured against, with such
deductibles as are customary for companies in the same or similar business, all
of which insurance and fidelity or surety bonds are in full force and effect.

 

4.19              Additional Information.  The information contained in this Agreement
and the following documents, which the Placement Agent has furnished to the
Purchaser, or will furnish prior to the Closing, as of the dates thereof, did
not contain an 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 light of the circumstances in which they were made not misleading:

 

(a)           the 2007 Form 10-K/A;

 

(b)           the Company’s Definitive Proxy
Statement for Annual Meeting of stockholders held July 12, 2007;

 

(c)           the Company’s Current Report on Form 8-K
filed on March 17, 2008;

 

(d)           the Company’s proxy statement filed
on April 29, 2008;

 

(e)           the draft Registration Statement;

 

(f)            the Private Placement Memorandum
dated as of April 15, 2008, as may be amended from time to time, including
all addenda and exhibits thereto, other than this Agreement and appendices and
exhibits hereto;

 

(g)           the Company’s Quarterly Report on Form 10-Q
filed on May 12, 2008; and  

 

(h)           all other documents, if any, filed by
the Company with the Commission since December 31, 2007, pursuant to the
reporting requirements of the Exchange Act; and

 

The documents incorporated
by reference in the Private Placement Memorandum or attached as exhibits
thereto, and any further documents so filed and incorporated by reference in
the Private Placement Memorandum and all other documents, if any, filed by the
Company with the Commission since December 31, 2006, pursuant to the
reporting requirements of the

 

 

Exchange Act, when such
documents became effective or are filed with the Commission, at the time they
became effective or were filed with the Commission, as the case may be,
complied in all material respects with the requirements of the Exchange Act, as
applicable, and the rules and regulations of the Commission thereunder
(the “1934 Act Rules and Regulations” and, together with the 1933
Act Rule and Regulations, the “Rules and Regulations”).  In the past 12 calendar months, the Company
has filed all documents required to be filed by it prior to the date hereof
with the Commission pursuant to the reporting requirements of the Exchange Act.

 

4.20              Price of Common Stock.  The Company has not taken, and will not take,
directly or indirectly, any action designed to cause or result in, or that has
constituted or that might reasonably be expected to constitute, the
stabilization or manipulation of the price of the shares of the Common Stock to
facilitate the sale or resale of the Shares, the Warrant Shares or the Ratchet
Warrant Shares.

 

4.21              Use of Proceeds.  The Company shall use the proceeds from the
sale of the Securities as described under “Use of Proceeds” in the Private
Placement Memorandum.

 

4.22              Non-Public Information.  The Company has not disclosed to the
Purchaser, whether in the Private Placement Memorandum or otherwise,
information that would constitute material non-public information as of the
Closing Date other than information included in the Private Placement
Memorandum regarding the acquisition of all of the outstanding membership
interests of Rio Algom Mining LLC by HRI-RAML Acquisition LLC (“Buyer”),
a wholly-owned subsidiary of the Company from Billiton Investment 15 B.V. (“Seller”),
pursuant to the Membership Interest Purchase Agreement by and between Buyer and
Seller, dated October 12, 2007 (the “Proposed Transaction”) and
information relating to the Properties Under Letter of Intent.  The Company shall issue a press release, and
the Company acknowledges that the Investors will rely on such press release,
disclosing such non-public information and the material terms of the
transactions contemplated by this Agreement by 8:30 a.m. on the morning of
the Business Day immediately following the date hereof.

 

4.23              Use of Purchaser Name.  Except as otherwise required by applicable
law or regulation the Company shall not use the Purchaser’s name or the name of
any of its affiliates in any advertisement, announcement, press release or
other similar public communication unless it has received the prior written
consent of the Purchaser for the specific use contemplated which consent shall
not be unreasonably withheld.

 

4.24              Related Party Transactions.  No transaction has occurred between or among
the Company, on the one hand, and its affiliates, officers or directors on the
other hand, that is required to have been described under applicable securities
laws in its Exchange Act filings and is not so described in such filings.

 

4.25              Off-Balance Sheet Arrangements.  There is no transaction, arrangement or other
relationship between the Company and an unconsolidated or other off-balance
sheet entity that is required to be disclosed by the Company in its Exchange
Act filings and is not so disclosed or that otherwise would be reasonably
likely to have a Material Adverse Effect. 
There are no such transactions, arrangements or other relationships with
the Company

 

 

that may create contingencies
or liabilities that are not otherwise disclosed by the Company in its Exchange
Act filings.

 

4.26              Governmental Permits, Etc.  Except as disclosed in the “Environmental
Considerations and Permitting” section of the 2007 Form 10-K/A, the
Company and each of its Subsidiaries has all requisite corporate power and
authority, and all necessary authorizations, approvals, consents, orders,
licenses, certificates, registrations and permits of and from, and have made
all required declarations and filings with, all governmental or regulatory
bodies or any other person or entity, including, without limitation, the Nuclear
Regulatory Commission (“NRC”), the Department of Energy (“DOE”)
and the Occupational Safety and Health Administration (“OSHA”), the
State of Texas Commission on Environmental Quality and any other governmental
or regulatory body, person or entity having jurisdiction (including, without
limitation, any such body, person or entity having jurisdiction over any mining
or milling related activity) and any tribe or nation with respect to Indian
Country (as such term is defined in the Private Placement Memorandum), all
self-regulatory organizations and all courts and other tribunals (collectively,
the “Permits”), to own, lease, license, work, develop, explore and use
its assets and properties (including, without limitation, surface and mineral
licenses, usage rights and water rights), as applicable, and conduct its
business, all of which are valid and in full force and effect, except where the
lack of such Permits, individually or in the aggregate, would not have a
Material Adverse Effect.  The Company and
each of its Subsidiaries has fulfilled and performed in all material respects
all of its obligations with respect to such Permits, including, without
limitation, requirements to obtain sufficient financial assurances, pay
required fees and/or taxes and otherwise maintain the validity of such Permits,
and no event has occurred that allows, or after notice or lapse of time would
allow, revocation or termination thereof or results in any other material
impairment of the rights of the Company thereunder.  Except as may be required under the
Securities Act and state and foreign Blue Sky laws, no other Permits are
required to enter into, deliver and perform this Agreement and to issue and
sell the Securities.

 

4.27              Financial Statements.  The consolidated financial statements of the
Company and the related notes and schedules thereto included in its Exchange
Act filings fairly present the financial position, results of operations,
stockholders’ equity and cash flows of the Company and its consolidated
Subsidiaries at the dates and for the periods specified therein.  Such financial statements and the related
notes and schedules thereto have been prepared in accordance with generally
accepted accounting principles consistently applied throughout the periods
involved (except as otherwise noted therein) and all adjustments necessary for
a fair presentation of results for such periods have been made.

 

4.28              Listing Compliance.  The Company is in compliance with the
requirements of the NASDAQ Global Market for continued listing of the Common
Stock thereon.  The Company has taken no
action designed to, or likely to have the effect of, terminating the
registration of the Common Stock under the Exchange Act or the listing of the
Common Stock on the NASDAQ Global Market, nor has the Company received any
notification that the Commission or the NASDAQ Global Market is contemplating
terminating such registration or listing. 
The transactions contemplated by this Agreement will not contravene the rules and
regulations of the NASDAQ Global Market. 
The Company will comply with all requirements of the NASDAQ Global
Market with respect to the issuance of the Shares, the Warrant Shares and the
Ratchet Warrant Shares and shall cause the Shares, the Warrant Shares

 

 

and the Ratchet Warrant Shares and shall cause the
Shares, the Warrant Shares and the Ratchet Warrant Shares to be listed on the
NASDAQ Global Market and listed on any other exchange on which the Company’s
Common Stock is listed on or before the Closing Date.

 

4.29              Internal
Accounting Controls.  The Company
maintains a system of internal accounting controls sufficient to provide
reasonable assurances that (i) transactions are executed in accordance
with management’s general or specific authorization; (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain
accountability for assets; (iii) access to assets is permitted only in
accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.  The Company has disclosure
controls and procedures (as defined in Rules 13a-14 and 15d-14 under the
Exchange Act) that are designed to ensure that material information relating to
the Company is made known to the Company’s principal executive officer and the
Company’s principal financial officer or persons performing similar
functions.  The Company is otherwise in
compliance in all material respects with all applicable provisions of the
Sarbanes-Oxley Act of 2002, as amended and the rules and regulations
promulgated thereunder.

 

4.30              Foreign
Corrupt Practices.  Neither the
Company, nor any Subsidiary, nor, to the knowledge of the Company, any
director, officer, agent, employee or other Person acting on behalf of the
Company or any Subsidiary has, in the course of its actions for, or on behalf
of, the Company (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expenses relating to
political activity; (ii) made any direct or indirect unlawful payment to
any foreign or domestic government official or employee from corporate funds; (iii) violated
or is in violation of any provision of the U.S. Foreign Corrupt Practices Act
of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic
government official or employee.

 

4.31              Employee
Relations.  Neither the Company nor
any Subsidiary is a party to any collective bargaining agreement or employs any
member of a union.  The Company and each
Subsidiary believe that their relations with their employees are good.  No executive officer of the Company (as
defined in Rule 501(f) promulgated under the Securities Act) has
notified the Company that such officer intends to leave the Company or
otherwise terminate such officer’s employment with the Company.  No executive officer of the Company is, or is
now expected to be, in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement,
non-competition agreement, or any other agreement or any restrictive covenant,
and the continued employment of each such executive officer does not subject
the Company or any Subsidiary to any liability with respect to any of the
foregoing matters.

 

4.32              ERISA.  The Company is in compliance in all material
respects with all presently applicable provisions of the Employee Retirement
Income Security Act of 1974, as amended, including the regulations and
published interpretations thereunder (herein called “ERISA”); no “reportable
event” (as defined in ERISA) has occurred with respect to any “pension plan”
(as defined in ERISA) for which the Company would have any liability; the
Company has not incurred and does not expect to incur liability under (i) Title
IV of ERISA with 

 

 

respect to termination of, or withdrawal from, any “pension
plan”; or (ii) Sections 412 or 4971 of the Internal Revenue Code of 1986,
as amended, including the regulations and published interpretations thereunder
(the “Code”); and each “Pension Plan” for which the Company would have liability
that is intended to be qualified under Section 401(a) of the Code is
so qualified in all material respects and nothing has occurred, whether by
action or by failure to act, which would cause the loss of such qualification.

 

4.33              Environmental
Matters.

 

(a)           Except
as disclosed in the “Environmental Considerations and Permitting” section of
the 2007 Form 10-K/A and Exhibit B attached hereto, (i) each
of the Company and each of its Subsidiaries is and have been in compliance in
all material respects with all rules, laws, ordinances and regulation relating
to the use, handling, treatment, storage, transportation and disposal of toxic
or hazardous substances or materials (including, without limitation, any such
substance or material designated or showing characteristics of hazard or
toxicity or identified as a pollutant or radioactive substance or oil of any
kind) or the protection of health, welfare or the environment or natural
resources (including, without limitation, all mining or health and safety laws)
(“Environmental Laws”) which are applicable to its business; (ii) neither
the Company nor its Subsidiaries has received any notice from any governmental
authority or third party of an asserted claim, action, fine, penalty, action
for injunctive relief or contribution, action for violation or matter
concerning compliance or nuisance or any harm to health or the environment or
for damage to natural resources or to persons or property, under Environmental
Laws; (iii) each of the Company and each of its Subsidiaries has received
all permits, licenses or other approvals required of it under applicable
Environmental Laws to conduct its business and is in compliance with all terms
and conditions of any such permit, license or approval; (iv) to the
Company’s knowledge, no facts currently exist that will require the Company or
any of its Subsidiaries to make future material capital expenditures to comply
with Environmental Laws; (v) no property which is or has been owned,
leased, used, operated or occupied by the Company or its Subsidiaries has been
designated as a Superfund site pursuant to the Comprehensive Environmental
Response, Compensation of Liability Act of 1980, as amended (42 U.S.C. Section 9601,
et. seq.), or otherwise designated as a contaminated site under applicable
state or local law; (vi) to the best of its knowledge, none of the Company
or any Subsidiary has acted in any way or caused any other person or entity to
act in any way or by arrangement or contract so as to be potentially
responsible or liable for any material claim, action, fine, penalty, action for
injunctive relief or contribution for any nuisance or harm to health or the
environment or for damage to natural resources or to persons or property; and (vii) none
of the Company or any Subsidiary has transported, treated or disposed of or
arranged for the transportation, treatment or disposal of any hazardous or
toxic substances or materials to any location which (x) is or was listed
or proposed for listing on the National Priorities List pursuant to CERCLA, on
the CERCLIS or on any similar state or local list of sites requiring
investigation or remedial action under any Environmental Law, or (y) is
currently or has been the subject of any remedial action or any litigation,
judgment, lien or enforcement action regarding any actual or alleged release of
any hazardous or toxic substance. 
Neither the Company nor any of its Subsidiaries has been named as a “potentially
responsible party” under the CERCLA 1980.

 

(b)           Except
as disclosed in the “Environmental Considerations and Permitting” section of
the 2007 Form 10-K/A and Exhibit B attached hereto (i) there
has not 

 

 

been, and there is not now any material or reportable
emission, spill, seepage, damage, release or discharge into or upon the air, soil
or improvements located thereon, surface water or ground water of any toxic or
hazardous substances, pollutants, contaminants, solid waste or hazardous waste,
which has given rise to or could reasonably be expected to give rise to
liability under any Environmental Law, and (ii) the Company has no
knowledge of any costs or liabilities associated with Environmental Laws
(including, without limitation, any capital or operating expenditures required
for clean-up, closure of properties or compliance with Environmental Laws or
any permit, license or approval, any related constraints on operating
activities and any potential liabilities to third parties) that would, after
taking into account existing indemnities from the DOE and after giving effect
to the Privatization Act, Chapter 1, Title 3 of Public Law 104-134, and the
Energy Policy Act of 1992, Public Law 102-486, individually or in the
aggregate, have a Material Adverse Effect.

 

(c)           In
the ordinary course of its business, the Company periodically reviews the
effect of Environmental Laws on the business, operations and properties of the
Company and its Subsidiaries, in the course of which the Company identifies and
evaluates associated costs and liabilities (including, without limitation, any
capital or operating expenditures required for the ability to operate and use
appropriate technology or techniques, clean-up, closure of properties or
compliance with Environmental Laws, or any permit, license or approval, any
related constraints on operating activities and any potential liabilities to
third parties).  On the basis of such
review, the Company has reasonably concluded that such associated costs and
liabilities would not, singly or in the aggregate, have a Material Adverse
Effect.

 

4.34              Integration;
Other Issuances of Securities. 
Neither the Company nor its Subsidiaries or any affiliates, nor any
Person acting on its or their behalf, has issued any shares of Common Stock or
shares of preferred stock or other securities or instruments convertible into,
exchangeable for or otherwise entitling the holder thereof to acquire shares of
Common Stock which would be integrated with the sale of the Securities to such
Purchaser for purposes of the Securities Act or of any applicable stockholder
approval provisions, including, without limitation, under the rules and
regulations of any exchange or automated quotation system on which any of the
securities of the Company are listed or designated, nor will the Company or its
subsidiaries or affiliates take any action or steps that would require
registration of any of the Securities under the Securities Act or cause the
offering of the Securities to be integrated with other offerings.  Assuming the accuracy of the representations
and warranties of Purchasers, the offer and sale of the Securities by the
Company to the Purchasers pursuant to this Agreement will be exempt from the
registration requirements of the Securities Act.

 

4.35              Disclosure
Control.  The Company has disclosure
controls and procedures (as defined in Rules 13a14 and 15d14 under the
Exchange Act) that are designed to ensure that material information relating to
the Company is made known to the Company’s principal executive officer and the
Company’s principal financial officer or persons performing similar functions.  The Company is otherwise in compliance in all
material respects with all applicable provisions of the Sarbanes-Oxley Act of
2002, as amended and the rules and regulations promulgated thereunder.

 

 

4.36              Shell
Company Status.  The Company has
never been an issuer subject to Rule 144(i) under the Securities Act.

 

4.37              U.S. Real
Property Holding Corporation.  The
Company is not, nor has it ever been, a U.S. real property holding corporation
within the meaning of Section 897 of the Internal Revenue Code of 1986, as
amended.

 

4.38              Acknowledgement
Regarding Purchaser’s Trading Activity. 
Anything in this Agreement or elsewhere herein to the contrary
notwithstanding, it is understood and acknowledged by the Company that: (i) none
of the Purchasers have been asked by the Company to agree, nor has any
Purchaser agreed, to desist from purchasing or selling, long and/or short,
securities of the Company, or “derivative” securities based on securities
issued by the Company or to hold the Securities for any specified term; (ii) that
past or future open market or other transactions by any Purchaser, specifically
including, without limitation, Short Sales or “derivative” transactions, before
or after the closing of this or future private placement transactions, may negatively
impact the market price of the Company’s publicly-traded securities; (iii) that
any Purchaser, and counter-parties in “derivative” transactions to which any
such Purchaser is a party, directly or indirectly, presently may have a “short”
position in the Common Stock unless represented otherwise by a Purchaser
herein, and (iv) that each Purchaser shall not be deemed to have any
affiliation with or control over any arm’s length counter-party in any “derivative”
transaction.  The Company further understands
and acknowledges that such hedging activities (if any) could reduce the value
of the existing stockholders’ equity interests in the Company at and after the
time that the hedging activities are being conducted.  The Company acknowledges that such aforementioned
hedging activities do not constitute a breach of this Agreement.  “Short Sales” means all “short sales” as
defined in Rule 200 of Regulation SHO under the Exchange Act.

 

4.39              Application
of Takeover Protections.  The Company
and the Board of Directors have taken all necessary action, if any, in order to
render inapplicable any control share acquisition, business combination, poison
pill (including any distribution under a rights agreement) or other similar
anti-takeover provision under the Company’s articles of incorporation (or
similar charter documents) or the laws of its state of incorporation that is or
could become applicable to the Purchasers as a result of the Purchasers and the
Company fulfilling their obligations or exercising their rights under this
Agreement and the Warrants, including without limitation as a result of the
Company’s issuance of the Securities and the Purchasers’ ownership of the
Securities.

 

4.40              Solvency.  Based on the consolidated financial condition
of the Company as of the Closing Date, after giving effect to the receipt by
the Company of the proceeds from the sale of the Securities hereunder, (i) the
fair saleable value of the Company’s assets exceeds the amount that will be
required to be paid on or in respect of the Company’s existing debts and other
liabilities (including known contingent liabilities) as they mature; (ii) the
Company’s assets do not constitute unreasonably small capital to carry on its
business as now conducted and as proposed to be conducted including its capital
needs taking into account the particular capital requirements of the business
conducted by the Company, and currently planned capital requirements and
capital availability thereof; and (iii) the current cash flow of the
Company, together with the proceeds the Company would receive, were it to
liquidate all of its 

 

 

assets, would be sufficient to pay all amounts on or
in respect of its liabilities when such amounts are required to be paid.  The Company does not intend to incur debts
beyond its ability to pay such debts as they mature (taking into account the
timing and amounts of cash to be payable on or in respect of its debt).  The Company has no knowledge of any facts or
circumstances which lead it to believe that it will file for reorganization or
liquidation under the bankruptcy or reorganization laws of any jurisdiction
within one year from the Closing Date.

 

4.41              Non-Public
Information.  Except with respect to
the material terms and conditions of the transactions contemplated by this
Agreement and the Warrants, and as set forth in Section 4.22, the Company
covenants and agrees that neither it, nor any other Person acting on its behalf
will provide any Purchaser or its agents or counsel with any information that
the Company believes constitutes material non-public information, unless prior
thereto such Purchaser shall have executed a written agreement regarding the
confidentiality and use of such information. 
The Company understands and confirms that each Purchaser shall be
relying on the foregoing covenant in effecting transactions in securities of
the Company.

 

4.42              Equal
Treatment of Purchasers.  No
consideration shall be offered or paid to any Person to amend or consent to a
waiver or modification of any provision of this Agreement or the Warrants
unless the same consideration is also offered to all of the parties to the this
Agreement.  For clarification purposes,
this provision constitutes a separate right granted to each Purchaser by the
Company and negotiated separately by each Purchaser, and is intended for the
Company to treat the Purchasers as a class and shall not in any way be
construed as the Purchasers acting in concert or as a group with respect to the
purchase, disposition or voting of Securities or otherwise.

 

4.43              Warrant
Shares.  If all or any portion of a
Warrant is exercised at a time when there is an effective registration
statement to cover the issuance or resale of the Warrant Shares or if the
Warrant is exercised via cashless exercise and the Warrant Shares issued are
eligible for immediate resale under Rule 144, the Warrant Shares issued
pursuant to any such exercise shall be issued free of all legends.  If at any time following the date hereof the
Registration Statements (or any subsequent registration statements registering
the Warrant Shares) are not effective or is not otherwise available for the
sale or resale of the Warrant Shares, the Company shall immediately notify the
holders of the Warrants in writing that such registration statements are not
then effective and thereafter shall promptly notify such holders when the
registration statement is effective again and available for the sale or resale
of the Warrant Shares.  Upon a cashless
exercise of the Warrants, the holding period for purposes of Rule 144 shall
tack back to the original date of issuance of such Warrant if such tacking is
allowed by the rules and interpretations of the Commission at such time.

 

SECTION 5.           Representations,
Warranties and Covenants of the Purchaser. 
The Purchaser represents and warrants to, and covenants with, the
Company that:

 

5.1                Experience.  (i) The Purchaser is knowledgeable,
sophisticated and experienced in financial and business matters, in making, and
is qualified to make, decisions with respect to investments in shares representing
an investment decision like that involved in the purchase of the Securities,
including investments in securities issued by the Company and comparable
entities, has the ability to bear the economic risks of an investment in the
Securities 

 

 

and has had the opportunity to review the Private
Placement Memorandum and has requested, received, reviewed and considered all
information it deems relevant in making an informed decision to purchase the
Securities; (ii) the Purchaser is acquiring the number of Securities set
forth on the signature page hereto in the ordinary course of its business
and for its own account and with no present intention of distributing any of
such Securities or any arrangement or understanding with any other persons
regarding the distribution of such Securities (this representation and warranty
not limiting the Purchaser’s right to sell pursuant to the Registration
Statements or in compliance with the Securities Act and the Rules and
Regulations, or, other than with respect to any claims arising out of a breach
of this representation and warranty, the Purchaser’s right to indemnification
under Section 7.3); (iii) the Purchaser will not, directly or
indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit
any offers to buy, purchase or otherwise acquire or take a pledge of) any of
the Securities, nor will the Purchaser engage in any short sale that results in
a disposition of any of the Securities by the Purchaser, except in compliance
with the Securities Act and the Rules and Regulations, any applicable
state securities laws; (iv) the Purchaser has completed or caused to be
completed the Registration Statement Questionnaire attached hereto as part of Appendix
I, for use in preparation of the Registration Statements, and the answers
thereto are true and correct as of the date hereof and will be true and correct
as of the effective date of each Registration Statement; (v) the Purchaser
has, in connection with its decision to purchase the number of Securities set forth
on the signature page hereto, relied solely upon the Private Placement
Memorandum and the representations and warranties of the Company contained
herein; (vi) the Purchaser has had an opportunity to discuss this
investment with representatives of the Company and ask questions of them; and (vii) the
Purchaser is an “accredited investor” within the meaning of Rule 501(a) of
Regulation D promulgated under the Securities Act.

 

5.2                Reliance on Exemptions.  The Purchaser understands that the Securities
are being offered and sold to it in reliance upon specific exemptions from the
registration requirements of the Securities Act, the Rules and Regulations
and state securities laws and that the Company is relying upon the truth and
accuracy of, and the Purchaser’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set
forth herein in order to determine the availability of such exemptions and the
eligibility of the Purchaser to acquire the Securities.

 

5.3                Confidentiality.  For the benefit of the Company, the Purchaser
previously agreed with the Placement Agent to keep confidential all information
concerning this private placement and the Proposed Transaction.  The Purchaser understands that the information
contained in the Private Placement Memorandum is strictly confidential and
proprietary to the Company and has been prepared from the Company’s publicly
available documents and other information and is being submitted to the
Purchaser solely for such Purchaser’s confidential use.  The Purchaser agrees to use the information
contained in the Private Placement Memorandum for the sole purpose of
evaluating a possible investment in the Securities and the Purchaser
acknowledges that it is prohibited from reproducing or distributing the Private
Placement Memorandum, this Agreement, or any other offering materials or other
information provided by the Company in connection with the Purchaser’s
consideration of its investment in the Company, in whole or in part, or
divulging or discussing any of their contents, except to its financial,
investment or legal advisors in connection with its proposed investment in the
Securities.  Further, the Purchaser
understands that the existence and nature of all conversations and 

 

 

presentations, if any, regarding the Company and this
offering must be kept strictly confidential. 
The Purchaser understands that applicable securities laws impose
restrictions on trading based on information regarding this offering.  In addition, the Purchaser hereby
acknowledges that unauthorized disclosure of information regarding this
offering may result in a violation of Regulation FD and other applicable
securities laws.  This obligation will
terminate upon the filing by the Company of a press release or press releases
describing this offering.  In addition to
the above, the Purchaser shall maintain in confidence the receipt and content
of any notice of a Suspension (as defined in Section 5.9 below).  The foregoing agreements shall not apply to
any information that is or becomes publicly available through no fault of the
Purchaser, or that the Purchaser is legally required to disclose; provided,
however, that if the
Purchaser is requested or ordered to disclose any such information pursuant to
any court or other government order or any other applicable legal procedure, it
shall, to the extent legally permissible, provide the Company with prompt
notice of any such request or order in time sufficient to enable the Company to
seek an appropriate protective order.

 

5.4                Investment Decision.  The Purchaser understands that nothing in the
Agreement or any other materials presented to the Purchaser in connection with
the purchase and sale of the Securities constitutes legal, tax or investment
advice.  The Purchaser has consulted such
legal, tax and investment advisors as it, in its sole discretion, has deemed
necessary or appropriate in connection with its purchase of the Securities.

 

5.5                Risk of Loss. 
The Purchaser understands that its investment in the Securities
involves a significant degree of risk, including a risk of total loss of the
Purchaser’s investment, and the Purchaser has full cognizance of and
understands all of the risk factors related to the Purchaser’s purchase of the
Securities, including, but not limited to, those set
forth under the caption “Risk Factors” in the Private Placement Memorandum.  The Purchaser understands that the market
price of the Common Stock has been volatile and that no representation is being
made as to the future value of the Common Stock.  Notwithstanding the foregoing, nothing in
this Section 5.5 shall modify the representations and warranties of the
Company set forth in Article 4 of this Agreement.

 

5.6                Legend. 
The Purchaser understands that, until such time as the applicable
Registration Statement has been declared effective or the Securities may be
sold pursuant to Rule 144 under the Securities Act without any restriction
as to the number of securities as of a particular date that can then be
immediately sold, the Securities, the Warrant Shares and the Ratchet Warrant
Shares will bear a restrictive legend in substantially the following form:

 

“THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR
THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.  THE SECURITIES MAY NOT BE OFFERED, SOLD,
OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE 

 

 

SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE
SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE
OF A TRANSACTION EXEMPT FROM REGISTRATION, OTHER THAN PURSUANT TO RULE 144,
UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY
TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES
ACT AND SUCH OTHER APPLICABLE LAWS.”

 

If the Company shall fail for any reason or for no
reason to issue to the holder of the Securities upon a proper request by such
holder, which request shall include the delivery of the Securities to the
Company’s transfer agent and notification of such request to both the Company
and the Company’s transfer agent, within three (3) Business Days after
receipt of such request, a certificate without such legend to the holder or to
issue such Securities to such holder by electronic delivery at the applicable
balance account at DTC, and if after such third Business Day the holder
purchases (in an open market transaction or otherwise) shares of the Company’s
common stock to deliver in satisfaction of a sale by the holder of such
Securities that the holder anticipated receiving without legend from the
Company (a “Buy-In”), then the Company shall, within three (3) Business
Days, and at the holder’s request and in the Company’s discretion, either (i) pay
cash to the holder in an amount equal to the holder’s total purchase price
(including brokerage commissions, if any) for the shares of the Company’s
common stock so purchased (the “Buy-In Price”), at which point the Company’s
obligation to deliver such unlegended Securities shall terminate, or (ii) promptly
honor its obligation to deliver to the holder such unlegended Securities as
provided above and pay cash to the holder in an amount equal to the excess (if
any) of the Buy-In Price over the product of (A) such number of shares of
common stock, times (B) the weighted average price of such common stock on
the date of exercise.

 

5.7                [Reserved].

 

5.8                Residency. 
The Purchaser’s principal executive offices are in the
jurisdiction set forth immediately below the Purchaser’s name on the signature pages hereto.

 

5.9                Public Sale or Distribution.  (a) 
The Purchaser hereby covenants with the Company not to make any sale of
the Securities (including any Warrant Shares and any Ratchet Warrant Shares)
under the Registration Statements without complying with the provisions of this
Agreement and without effectively causing the prospectus delivery requirement
under the Securities Act to be satisfied (whether physically or through
compliance with Rule 172 under the Securities Act or any similar
rule).  The Purchaser acknowledges that
there may occasionally be times when the Company must suspend (i) the use
of the prospectus  (the “Share/Warrant
Prospectus”) forming a part of the Share/Warrant Registration Statement
(the “Share/Warrant Prospectus Suspension”) until such time as an
amendment to the Share/Warrant Registration Statement has been filed by the
Company and declared effective by the Commission, or until such time as the
Company has filed an appropriate report with the Commission pursuant to the
Exchange Act, and (ii) the use of the prospectus (the “Ratchet
Prospectus”), forming a part of the Ratchet Registration Statement (the “Ratchet
Prospectus 

 

 

Suspension”) until such time as an
amendment to the Ratchet Registration Statement has been filed by the Company
and declared effective by the Commission, or until such time as the Company has
filed an appropriate report with the Commission pursuant to the Exchange
Act.  The Ratchet Prospectus and
Share/Warrant Prospectus, each referred to individually as a “Prospectus”
and collectively as the “Prospectuses.” 
The Ratchet Prospectus Suspension and the Share/Warrant Suspension, each
referred to individually as a “Suspension” and collectively as the “Suspensions.”

 

Without the Company’s prior written consent, which
consent shall not unreasonably be withheld or delayed, the Purchaser shall not
use any written materials to offer the Securities (including any Warrant Shares
and any Ratchet Warrant Shares) for resale other than the Prospectuses,
including any “free writing prospectus” as defined in Rule 405 under the
Securities Act.  The Purchaser covenants
that it will not sell any Securities (including any Warrant Shares and any
Ratchet Warrant Shares) pursuant to either Prospectus during the period
commencing at the time when Company gives the Purchaser written notice of the
suspension of the use of said Prospectus and ending at the time when the
Company gives the Purchaser written notice that the Purchaser may thereafter
effect sales pursuant to said Prospectus. 
Notwithstanding the foregoing, the Company agrees that no Suspension
shall be for a period of longer than 10 consecutive days, and no Suspension
shall be for a period longer than 20 days in the aggregate in any 365 day
period.

 

5.10              Organization; Validity; Enforcements.  The
Purchaser further represents and warrants to, and covenants with, the Company
that (i) the Purchaser has full right, power, authority and capacity to
enter into this Agreement and to consummate the transactions contemplated
hereby and has taken all necessary action to authorize the execution, delivery
and performance of this Agreement, (ii) the making and performance of this
Agreement by the Purchaser and the consummation of the transactions herein
contemplated will not violate any provision of the organizational documents of
the Purchaser or conflict with, result in the breach or violation of, or
constitute, either by itself or upon notice or the passage of time or both, a
default under any material agreement, mortgage, deed of trust, lease,
franchise, license, indenture, permit or other instrument to which the Purchaser
is a party or, any statute or any authorization, judgment, decree, order, rule or
regulation of any court or any regulatory body, administrative agency or other
governmental agency or body applicable to the Purchaser, (iii) no consent,
approval, authorization or other order of any court, regulatory body,
administrative agency or other governmental agency or body is required on the
part of the Purchaser for the execution and delivery of this Agreement or the
consummation of the transactions contemplated by this Agreement, (iv) upon
the execution and delivery of this Agreement, this Agreement shall constitute a
legal, valid and binding obligation of the Purchaser, enforceable in accordance
with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other laws of general
application relating to or the enforcement of creditor’s rights and the
application of equitable principles relating to the availability of remedies,
and except as rights to indemnity or contribution, including, but not limited
to, the indemnification provisions set forth in Section 7.3 of this
Agreement, may be limited by federal or state securities laws or the public
policy underlying such laws and (v) there is not in effect any order
enjoining or restraining the Purchaser from entering into or engaging in any of
the transactions contemplated by this Agreement.

 

 

SECTION 6.           Survival
of Agreements; Survival of Company Representations and Warranties.  Notwithstanding any investigation made by any
party to this Agreement or by the Placement Agent, all covenants and agreements
made by the Company and the Purchaser herein and in the certificates for the
Securities (including the Warrant Shares and the Ratchet Warrant Shares)
delivered pursuant hereto shall survive the execution of this Agreement, the
delivery to the Purchaser of the Securities being purchased and the payment
therefor.  All representations and
warranties, made by the Company and the Purchaser herein and in the
certificates for the Securities delivered pursuant hereto shall survive for a
period of three years following the later of the execution of this Agreement,
the delivery to the Purchaser of the Securities being purchased and the payment
therefor.

 

SECTION 7.           Registration
of the Securities; Compliance with the Securities Act.

 

7.1                Registration
Procedures and Expenses.  The Company shall:

 

(a)           as
soon as practicable, but in no event later than ten days following (i) the
Closing Date (the “Share/Warrant Filing Deadline”), prepare and file
with the Commission a registration statement on Form S-3 relating to the
resale of the Shares and the Warrant Shares (the “Share/Warrant Registration
Statement”), and (ii) a Triggering Event, as defined in the Ratchet
Warrants, (the “Ratchet Filing Deadline”),  a registration statement on Form S-3
relating to the resale of the Ratchet Warrant Shares (the “Ratchet Registration
Statement”), by the Purchaser and the Other Purchasers from time to time on
the NASDAQ Global Market, or the facilities of any national securities exchange
on which the Common Stock is then traded or in privately-negotiated
transactions.  The Ratchet Filing
Deadline and Share/Warrant Filing Deadline are each referred to individually as
a “Filing Deadline” and collectively as the “Filing Deadlines.”
The Ratchet Registration Statement and Share/Warrant Registration Statement are
each referred to individually as a “Registration Statement” and
collectively as the “Registration Statements.” The Shares, Warrant
Shares and Ratchet Warrant Shares, together with any capital stock of the
Company issued or issuable, with respect to the 
Warrants as a result of any stock split, stock  dividend, recapitalization, exchange or
similar event or otherwise, without regard to any limitations on exercises of
the Warrants, the “Registrable Securities”);

 

(b)           use
its best efforts, subject to receipt of necessary information from the
Purchasers, to cause the Commission to (i) declare the Share/Warrant
Registration Statement effective within 90 days or, if the Share/Warrant
Registration Statement is selected for review by the Commission, 120 days after
the Closing Date, and (ii) declare the Ratchet Registration Statement
effective within 90 days or, if the Ratchet Registration Statement is selected
for review by the Commission, 120 days after a Triggering Event (each, an “Effective
Deadline”);

 

(c)           promptly
prepare and file with the Commission such amendments and supplements to the
Registration Statements and the prospectus used in connection therewith as may
be necessary to keep such Registration Statements effective until the earliest
of (i) one year from the expiration date of the Warrants, or (ii) such
time as the Registrable Securities become eligible for resale by each of the
Purchasers without any volume limitations or other restrictions pursuant to Rule 144
under the Securities Act or any other rule of similar effect; 

 

 

provided that, for the avoidance of doubt, in no event
shall the Company have any obligation to keep such Registration Statements
effective after such time as all of the Registrable Securities have been sold
pursuant to the Registration Statements or Rule 144;

 

(d)           furnish
to the Purchaser with respect to the Registrable Securities registered under
the Registration Statements (and to each underwriter, if any, of such shares)
such number of copies of prospectuses and such other documents as the Purchaser
may reasonably request, in order to facilitate the public sale or other
disposition of all or any of the Registrable Securities by the Purchaser;

 

(e)           file
documents required of the Company for normal Blue Sky clearance in states
specified in writing by the Purchaser; provided, however, that
the Company shall not be required to qualify to do business or consent to
service of process in any jurisdiction in which it is not now so qualified or
has not so consented;

 

(f)            bear
all expenses in connection with the procedures in paragraphs (a) through (e) of
this Section 7.1 and the registration of the Registrable Securities
pursuant to the Registration Statements, other than fees and expenses, if any,
of counsel or other advisers to the Purchaser or the Other Purchasers or
underwriting discounts, brokerage fees and commissions incurred by the
Purchaser or the Other Purchasers, if any in connection with the offering of
the Registrable Securities pursuant to the Registration Statements;

 

(g)           file
a Form D with respect to the Securities as required under Regulation D and
to provide a copy thereof to the Purchaser promptly after filing; and

 

(h)           in
order to enable the Purchasers to sell the Registrable Securities under Rule 144
to the Securities Act, until the earliest of (i) one year from the
expiration date of the Warrants, or (ii) such time as the Registrable
Securities become eligible for resale by each of the Purchasers without any
volume limitations or other restrictions pursuant to Rule 144 under the
Securities Act or any other rule of similar effect, use its commercially
reasonable efforts to comply with the requirements of Rule 144, including
without limitation, use its commercially reasonable efforts to comply with the
requirements of Rule 144(c)(1) with respect to public information
about the Company and to timely file all reports required to be filed by the
Company under the Exchange Act, regardless of whether the Company is required
to file any such reports under the Exchange Act.

 

The
Company understands that the Purchaser disclaims being an underwriter, but the
Purchaser being deemed an underwriter shall not relieve the Company of any
obligations it has hereunder.  A draft of
the proposed form of the questionnaire related to the Registration Statements
to be completed by the Purchaser is attached hereto as Appendix I.

 

7.2                Transfer
of Securities After Registration. 
The Purchaser agrees that it will not effect any disposition of the
Securities (including any Warrant Shares and any Ratchet Warrant Shares) or its
right to purchase the Securities (including any Warrant Shares and any Ratchet
Warrant Shares) that would constitute a sale within the meaning of the
Securities Act or pursuant to any applicable state securities laws, except as
contemplated in the Registration Statements referred to in Section 7.1 or
as otherwise permitted by law.

 

 

7.3                Indemnification.  For the purpose of this Section 7.3:

 

(i)       the term “Purchaser/Affiliate”
shall mean any affiliate of the Purchaser, including a transferee who is an
affiliate of the Purchaser, and any person who controls the Purchaser or any
affiliate of the Purchaser within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act; and

 

(ii)      the term “Registration Statement”
shall include any preliminary prospectus, final prospectus, free writing
prospectus, exhibit, supplement or amendment included in or relating to, and
any document incorporated by reference in, the Registration Statements referred
to in Section 7.1.

 

(a)           The
Company agrees to indemnify and hold harmless the Purchaser and each
Purchaser/Affiliate, against any losses, claims (including any third-party
claims), damages, liabilities or expenses, joint or several, to which the
Purchaser or Purchaser/Affiliates may become subject, under the Securities Act,
the Exchange Act, or any other federal or state statutory law or regulation, or
at common law or otherwise (including in settlement of any litigation, if such
settlement is effected with the written consent of the Company), insofar as such
losses, claims, damages, liabilities or expenses (or actions in respect thereof
as contemplated below) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in a Registration
Statement, including the Prospectus, financial statements and schedules, and
all other documents filed as a part thereof, as amended at the time of
effectiveness of a Registration Statement, including any information deemed to
be a part thereof as of the time of effectiveness pursuant to paragraph (b) of
Rule 430A, or pursuant to Rules 430B, 430C or 434, of the Rules and
Regulations, or the Prospectus, in the form first filed with the Commission
pursuant to Rule 424(b) of the Regulations, or filed as part of a
Registration Statement at the time of effectiveness if no Rule 424(b) filing
is required or any amendment or supplement thereto, or arise out of or are
based upon the omission or alleged omission to state in any of them a material
fact required to be stated therein or necessary to make the statements in a
Registration Statement or any amendment or supplement thereto not misleading or
in the Prospectus or any amendment or supplement thereto not misleading in
light of the circumstances under which they were made, or arise out of or are
based in whole or in part on any breach of, or inaccuracy in, the
representations, warranties, and covenants of the Company contained in this
Agreement, or any failure of the Company to perform its obligations hereunder
or under law, and will promptly reimburse each Purchaser and each
Purchaser/Affiliate for any legal and other expenses as such expenses are
reasonably incurred by such Purchaser or such Purchaser/Affiliate in connection
with investigating, defending or preparing to defend, settling, compromising or
paying any such loss, claim, damage, liability, expense or action; provided,
however, that the Company will not be liable for amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Company, which consent shall
not be unreasonably withheld, and the Company will not be liable in any such
case to the extent that any such loss, claim, damage, liability or expense
arises out of or is based upon (i) an untrue statement or alleged untrue
statement or omission or alleged omission made in the Registration Statement,
the Prospectus or any amendment or supplement thereto in reliance upon and in 

 

 

conformity with written information furnished to the
Company by or on behalf of the Purchaser expressly for use therein, or (ii) the
failure of such Purchaser to comply with the covenants and agreements contained
in Sections 5.9 or 7.2 hereof respecting the sale of the Securities or (iii) the
inaccuracy of any representation or warranty made by such Purchaser herein or (iv) any
statement or omission in any Prospectus that is corrected in any subsequent
Prospectus that was delivered to the Purchaser prior to the pertinent sale or
sales by the Purchaser.

 

(b)           Each
Purchaser will severally, but not jointly, indemnify and hold harmless the
Company, each of its directors, each of its officers who signed a Registration
Statement and each person, if any, who controls the Company within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange
Act, against any losses, claims, damages, liabilities or expenses to which the
Company, each of its directors, each of its officers who signed the
Registration Statement or controlling person may become subject, under the Securities
Act, the Exchange Act, or any other federal or state statutory law or
regulation, or at common law or otherwise (including in settlement of any
litigation, but only if such settlement is effected with the written consent of
such Purchaser) insofar as such losses, claims, damages, liabilities or
expenses (or actions in respect thereof as contemplated below) arise out of or
are based upon (i) any failure to comply with the covenants and agreements
contained in Sections 5.9 or 7.2 hereof respecting the sale of the Securities
or (ii) the inaccuracy of any representation or warranty made by such
Purchaser herein or (iii) any untrue or alleged untrue statement of any
material fact contained in the Registration Statements, the Prospectuses, or
any amendment or supplement thereto, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements in each Registration
Statement or any amendment or supplement thereto not misleading or in the
Prospectuses or any amendment or supplement thereto not misleading in the light
of the circumstances under which they were made, in each case to the extent,
but only to the extent, that such untrue statement or alleged untrue statement
or omission or alleged omission was made in the Registration Statements, the
Prospectuses, or any amendment or supplement thereto, in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
any Purchaser expressly for use therein; and will reimburse the Company, each
of its directors, each of its officers who signed the Registration Statements
or controlling person for any legal and other expense reasonably incurred by
the Company, each of its directors, each of its officers who signed the
Registration Statements or controlling person in connection with investigating,
defending, settling, compromising or paying any such loss, claim, damage,
liability, expense or action; provided, however, that each Purchaser’s
aggregate liability under this Section 7 shall not exceed the amount of
proceeds received by such Purchaser on the sale of the Shares, the Warrant
Shares and the Ratchet Warrant Shares pursuant to the Registration Statements.

 

(c)           Promptly
after receipt by an indemnified party under this Section 7.3 of notice of
the threat or commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party under this
Section 7.3 promptly notify the indemnifying party in writing thereof, but
the omission to notify the indemnifying party will not relieve it from any
liability that it may have to any indemnified party for contribution or
otherwise under the indemnity agreement contained in this Section 7.3 to
the extent it is not prejudiced as a result of such failure.  In case any such action is brought against
any indemnified party and such indemnified party seeks or intends to seek
indemnity from an 

 

 

indemnifying party, the indemnifying party will be entitled
to participate in, and, to the extent that it may wish, jointly with all other
indemnifying parties similarly notified, to assume the defense thereof with
counsel reasonably satisfactory to such indemnified party; provided, however,
if the defendants in any such action include both the indemnified party, and
the indemnifying party and the indemnified party shall have reasonably
concluded, based on an opinion of counsel reasonably satisfactory to the
indemnifying party, that there may be a conflict of interest between the
positions of the indemnifying party and the indemnified party in conducting the
defense of any such action or that there may be legal defenses available to it
and/or other indemnified parties that are different from or additional to those
available to the indemnifying party, the indemnified party or parties shall
have the right to select separate counsel to assume such legal defenses and to
otherwise participate in the defense of such action on behalf of such
indemnified party or parties.  Upon
receipt of notice from the indemnifying party to such indemnified party of its
election to assume the defense of such action and approval by the indemnified
party of counsel, the indemnifying party will not be liable to such indemnified
party under this Section 7.3 for any legal or other expenses subsequently
incurred by such indemnified party in connection with the defense thereof
unless (i) the indemnified party shall have employed such counsel in
connection with the assumption of legal defenses in accordance with the proviso
to the preceding sentence (it being understood, however, that the indemnifying
party shall not be liable for the expenses of more than one separate counsel,
reasonably satisfactory to such indemnifying party, representing all of the
indemnified parties who are parties to such action) or (ii) the
indemnifying party shall not have employed counsel reasonably satisfactory to
the indemnified party to represent the indemnified party within a reasonable
time after notice of commencement of action, in each of which cases the
reasonable fees and expenses of counsel shall be at the expense of the
indemnifying party. The indemnifying party shall not be liable for any
settlement of any action without its written consent.  In no event shall any indemnifying party be
liable in respect of any amounts paid in settlement of any action unless the
indemnifying party shall have approved in writing the terms of such settlement;
provided that such consent shall not be unreasonably withheld.  No indemnifying party shall, without the
prior written consent of the indemnified party, effect any settlement of any
pending or threatened proceeding in respect of which any indemnified party is
or could have been a party and indemnification could have been sought hereunder
by such indemnified party from all liability on claims that are the subject
matter of such proceeding.

 

(d)           If
the indemnification provided for in this Section 7.3 is required by its
terms but is for any reason held to be unavailable to or otherwise insufficient
to hold harmless an indemnified party under paragraphs (a), (b) or (c) of
this Section 7.3 in respect to any losses, claims, damages, liabilities or
expenses referred to herein, then each applicable indemnifying party shall
contribute to the amount paid or payable by such indemnified party as a result
of any losses, claims, damages, liabilities or expenses referred to herein (i) in
such proportion as is appropriate to reflect the relative benefits received by
the Company and the Purchaser from the private placement of Securities
hereunder or (ii) if the allocation provided by clause (i) above is
not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but
the relative fault of the Company and the Purchaser in connection with the
statements or omissions or inaccuracies in the representations and warranties
in this Agreement and/or the Registration Statements that resulted in such
losses, claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations.  The relative
benefits received by the Company on the one hand and each 

 

 

Purchaser on the other shall be deemed to be in the
same proportion as the amount paid by such Purchaser to the Company pursuant to
this Agreement for the Securities purchased by such Purchaser that were sold
pursuant to the Registration Statements bears to the difference (the “Difference”)
between the amount such Purchaser paid for the Shares, the Warrant Shares and
the Ratchet Warrant Shares that were sold pursuant to each Registration
Statement and the amount received by such Purchaser from such sale.  The relative fault of the Company on the one
hand and each Purchaser on the other shall be determined by reference to, among
other things, whether the untrue or alleged statement of a material fact or the
omission or alleged omission to state a material fact or the inaccurate or the
alleged inaccurate representation and/or warranty relates to information
supplied by the Company or by such Purchaser and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.  The amount paid
or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include, subject to the
limitations set forth in paragraph (c) of this Section 7.3, any legal
or other fees or expenses reasonably incurred by such party in connection with
investigating or defending any action or claim. 
The provisions set forth in paragraph (c) of this Section 7.3
with respect to the notice of the threat or commencement of any threat or
action shall apply if a claim for contribution is to be made under this
paragraph (d); provided, however, that no additional notice shall
be required with respect to any threat or action for which notice has been
given under paragraph (c) for purposes of indemnification.  The Company and the Purchaser agree that it
would not be just and equitable if contribution pursuant to this Section 7.3
were determined solely by pro rata allocation (even if the Purchaser were
treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to in this
paragraph.  Notwithstanding the
provisions of this Section 7.3, no Purchaser shall be required to
contribute any amount in excess of the amount by which the Difference exceeds
the amount of any damages that such Purchaser has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. 
The Purchasers’ obligations to contribute pursuant to this Section 7.3
are several and not joint.

 

7.4                [Reserved].

 

7.5                Information
Available.  The Company, upon the
reasonable request of the Purchaser, shall make available for inspection by
each Purchaser, any underwriter participating in any disposition pursuant to
the Registration Statements and any attorney, accountant or other agent
retained by the Purchaser or any such underwriter, all financial and other
records, pertinent corporate documents and properties of the Company, and cause
the Company’s officers, employees and independent accountants to supply all
information reasonably requested by the Purchaser or any such underwriter,
attorney, accountant or agent in connection with the Registration Statements.

 

7.6                Delay
in Filing or Effectiveness of a Registration Statement  If a Registration Statement is not filed by
the Company with the Commission on or prior to the applicable Filing Deadline,
then for each day following the applicable Filing Deadline, until but excluding
the date a Registration Statement is filed, or if a Registration Statement is
not declared effective by the Commission by the applicable Effective Deadline,
then for each day following 

 

 

the applicable Effective Deadline, until but excluding
the date the Commission declares such Registration Statement effective, the
Company shall, for each such day, pay the Purchaser with respect to any such
failure, as liquidated damages and not as a penalty, an amount per 30-day
period equal to 1.0% (prorated for a period less than 30 days) of the purchase
price paid by such Purchaser for its Securities pursuant to this Agreement; and
for any such 30-day period, such payment shall be made no later than three
business days following such 30-day period. 
If the Purchaser shall be prohibited from selling Shares, the Warrant
Shares or the Ratchet Warrant Shares under a Registration Statement as a result
of a Suspension of more than twenty (20) days or Suspensions on more than
two (2) occasions of not more than twenty (20) days each in any
12-month period, then for each day on which a Suspension is in effect that
exceeds the maximum allowed period for a Suspension or Suspensions, but not
including any day on which a Suspension is lifted, the Company shall pay the
Purchaser, as liquidated damages and not as a penalty, an amount per 30-day
period equal to 1.0% (prorated for a period less than 30 days) of the purchase
price paid by such Purchaser for its Securities pursuant to this Agreement for
each such day, and such payment shall be made no later than the first business
day of the calendar month next succeeding the month in which such day
occurs.  For purposes of this Section 7.6,
a Suspension shall be deemed lifted on the date that notice that the Suspension
has been lifted is delivered to the Purchaser pursuant to Section 5(h) of
this Agreement.  Any payments made
pursuant to this Section 7.6 shall not constitute the Purchaser’s
exclusive remedy for such events. 
Notwithstanding the foregoing provisions, in no event shall the Company
be obligated to pay any liquidated damages pursuant to this Section 7.6 (i) to
more than one Purchaser in respect of the same Securities for the same period
of time, or (ii) in an aggregate amount that exceeds 10% of the purchase
price paid by the Purchasers for the Securities pursuant to this
Agreement.  Such payments shall be made
to the Purchasers in cash.

 

SECTION 8.           Broker’s
Fee.  The Purchaser acknowledges that
the Company intends to pay to the Placement Agent a fee in respect of the sale
of the Securities to the Purchaser.  The
Purchaser and the Company agree that the Purchaser shall not be responsible for
such fee and that the Company will indemnify and hold harmless the Purchaser
and each Purchaser/Affiliate against any losses, claims, damages, liabilities
or expenses, joint or several, to which such Purchaser or Purchaser/Affiliate
may become subject with respect to such fee. 
Each of the parties hereto represents that, on the basis of any actions
and agreements by it, there are no other brokers or finders entitled to
compensation in connection with the sale of the Securities to the Purchaser.

 

SECTION 9.           Independent
Nature of Purchasers’ Obligations and Rights.  The obligations of the Purchaser under this
Agreement are several and not joint with the obligations of any Other
Purchaser, and no Purchaser shall be responsible in any way for the performance
of the obligations of any Other Purchaser under the Agreements.  The decision of each Purchaser to purchase
the Securities pursuant to the Agreements has been made by such Purchaser
independently of any Other Purchaser. 
Nothing contained in the Agreements, and no action taken by any
Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by
the Agreements.  Each Purchaser
acknowledges that no Other Purchaser has acted as agent for such Purchaser in
connection with making its investment hereunder and that no Other Purchaser
will be acting as agent of such Purchaser in connection 

 

 

with monitoring its investment in the Securities or
enforcing its rights under this Agreement. 
Each Purchaser shall be entitled to independently protect and enforce
its rights, including without limitation the rights arising out of this
Agreement, and it shall not be necessary for any Other Purchaser to be joined
as an additional party in any proceeding for such purpose.

 

SECTION 10.         Notices.  All notices, requests, consents and other
communications hereunder shall be in writing, shall be mailed by first-class
registered or certified airmail, e-mail, confirmed facsimile or nationally
recognized overnight express courier postage prepaid, and shall be deemed given
when so mailed and shall be delivered as addressed as follows:

 

if to the Company, to:

 

	
  Uranium
  Resources, Inc.

  405 State Highway 121 Bypass

  Building A, Suite 110

  Lewisville, Texas 75067

  Attention: Thomas H. Ehrlich,
   Vice President and CFO

  Facsimile: (972) 219-3311

  E-mail: thehrlich@uraniumresources.com

  
	
   

  
	
  with a copy
  to:

  
	
   

  
	
  Baker &
  Hostetler LLP

  303 East 17th Avenue, Suite 1100

  Denver, Colorado 80203

  Attention:  Alfred C. Chidester

  Facsimile: (303) 861-7805

  E-mail: achidester@bakerlaw.com

  

 

or to such other
person at such other place as the Company shall designate to the Purchaser in
writing; and

 

if to the Purchaser, at its address as set forth at the end of this
Agreement, or at such other address or addresses as may have been furnished to
the Company in writing.

 

SECTION 11.         Termination.  This Agreement may be terminated prior to the Closing by any
Purchaser, as to such Purchaser’s obligations hereunder only and without any
effect whatsoever on the obligations between the Company and the other
Purchasers, by written notice to the other parties, if the Closing has not been
consummated on or before May 22, 2008; provided, however,
that no such termination will affect the right of any party to sue for any
breach by the other party (or parties).

 

SECTION 12.         Rescission and Withdrawal Right. 
Whenever any Purchaser exercises a right, election, demand or option
under this Agreement or the Warrants and the Company does not timely perform
its related obligations within the periods therein provided, 

 

 

then such Purchaser may
rescind or withdraw, in its sole discretion from time to time upon reasonable
prior written notice to the Company, any relevant notice, demand or election in
whole or in part without prejudice to its future actions and rights; provided,
however, that in the case of a rescission of an exercise of a Warrant,
the Purchaser shall be required to return any shares of Common Stock delivered
in connection with any such rescinded exercise notice.

 

SECTION 13.         Replacement of Securities.  If
any certificate or instrument evidencing any Securities is mutilated, lost,
stolen or destroyed, the Company shall issue or cause to be issued in exchange
and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but
only upon receipt of evidence reasonably satisfactory to the Company of such
loss, theft or destruction.  The
applicant for a new certificate or instrument under such circumstances shall
also pay any reasonable third-party costs (including customary indemnity)
associated with the issuance of such replacement Securities.

 

SECTION 14.         Liquidated Damages.  The
Company’s obligations to pay any partial liquidated damages or other amounts
owing under this Agreement and the Warrants is a continuing obligation of the
Company and shall not terminate until all unpaid partial liquidated damages and
other amounts have been paid notwithstanding the fact that the instrument or
security pursuant to which such partial liquidated damages or other amounts are
due and payable shall have been canceled.

 

SECTION 15.         Saturdays, Sundays, Holidays, etc.  If the
last or appointed day for the taking of any action or the expiration of any
right required or granted herein shall not be a Business Day, then such action
may be taken or such right may be exercised on the next succeeding Business
Day.

 

SECTION 16.         WAIVER OF JURY
TRIAL.  IN ANY ACTION, SUIT, OR
PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY,
THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED
BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND
EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

SECTION 17.         Changes.  This Agreement may not be modified or amended
except pursuant to an instrument in writing signed by the Company and the
Purchaser.  Any amendment or waiver
effected in accordance with this Section 11 shall be binding upon each
holder of any securities purchased under this Agreement at the time
outstanding, each future holder of all such securities, and the Company.

 

SECTION 18.         Headings.  The headings of the various sections of this
Agreement have been inserted for convenience of reference only and shall not be
deemed to be part of this Agreement.

 

SECTION 19.         Severability.  In case any provision contained in this
Agreement should be invalid, illegal or unenforceable in any respect, the
validity, legality and 

 

 

enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby.

 

SECTION 20.         Governing
Law; Venue.  This Agreement is to be
construed in accordance with and governed by the federal law of the United
States of America and the internal laws of the State of New York without giving
effect to any choice of law rule that would cause the application of the
laws of any jurisdiction other than the internal laws of the State of New York
to the rights and duties of the parties. 
Each of the Company and the Purchaser submits to the nonexclusive
jurisdiction of the United States District Court for the Southern District of
New York and of any New York State court sitting in New York City for purposes
of all legal proceedings arising out of or relating to this Agreement and the
transactions contemplated hereby.  Each
of the Company and the Purchaser irrevocably waives, to the fullest extent
permitted by law, any objection that it may now or hereafter have to the laying
of the venue of any such proceeding brought in such a court and any claim that
any such proceeding brought in such a court has been brought in an inconvenient
forum.

 

SECTION 21.         Counterparts.  This Agreement may be executed in
counterparts, each of which shall constitute an original, but all of which,
when taken together, shall constitute but one instrument, and shall become
effective when one or more counterparts have been signed by each party hereto
and delivered to the other parties. 
Facsimile signatures shall be deemed original signatures.

 

SECTION 22.         Entire
Agreement.  This Agreement and the
instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as
specifically set forth herein or therein, neither the Company nor the Purchaser
makes any representation, warranty, covenant or undertaking with respect to
such matters.  Each party expressly
represents and warrants that it is not relying on any oral or written
representations, warranties, covenants or agreements outside of this Agreement.

 

SECTION 23.         Fees
and Expenses.  Except as set forth
herein, each of the Company and the Purchaser shall pay its respective fees and
expenses related to the transactions contemplated by this Agreement.

 

SECTION 24.         Parties.  This Agreement is made solely for the benefit
of and is binding upon the Purchaser and the Company and to the extent provided
in Section 7.3, any person controlling the Company or the Purchaser, the
officers and directors of the Company, and their respective executors,
administrators, successors and assigns and subject to the provisions of Section 7.3,
no other person shall acquire or have any right under or by virtue of this
Agreement. The term “successor and assigns” shall not include any subsequent
purchaser, as such purchaser, of the Securities sold to the Purchaser pursuant
to this Agreement.

 

SECTION 25.         Further
Assurances.  Each party agrees to
cooperate fully with the other parties and to execute such further instruments,
documents and agreements and to give such further written assurance as may be
reasonably requested by any other party to evidence and reflect the transactions
described herein and contemplated hereby and to carry into effect the intents
and purposes of this Agreement.

 

 

[Remainder of Page Left Intentionally Blank]

 

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
duly authorized representatives as of the day and year first above written.

 

 

	
   

  	
  URANIUM
  RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

INVESTOR SIGNATURE PAGE

 

	
   

  	
  Print or Type:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of Purchaser

  
	
   

  	
  (Individual or Institution)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Jurisdiction of Purchaser’s Executive Offices

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of Individual representing 

  
	
   

  	
  Purchaser (if an Institution)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title of Individual representing 

  
	
   

  	
  Purchaser (if an Institution)

  

 

	
   

  	
  Signature by:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Individual Purchaser or Individual 

  
	
   

  	
   

  	
  representing Purchaser:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile:

  	
   

  
	
   

  	
   

  	
  E-mail:

  	
   

  
						

 

	
  Number of Shares to

  	
   

  	
  Number of Warrants

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Be

  	
   

  	
  to Be

  	
   

  	
  Price Per Unit In

  	
   

  	
  Aggregate

  	
   

  
	
  Purchased

  	
   

  	
  Purchased

  	
   

  	
  Dollars

  	
   

  	
  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
  $

  	
   

  

 

 

EXHIBIT
A

 

	
  Name of Subsidiary

  	
   

  	
  State or Other Jurisdiction of

  Incorporation/Organization

  
	
   

  	
   

  	
   

  
	
  URI, Inc.

  	
   

  	
  Delaware

  
	
  Hydro Resources, Inc. dba HRI, Inc.

  	
   

  	
  Delaware

  
	
  URI Minerals, Inc.

  	
   

  	
  Delaware

  
	
  Hydro Restoration Corporation

  	
   

  	
  Delaware

  
	
  Belt Line Resources, Inc.

  	
   

  	
  Texas

  
	
  Uranco, Inc.

  	
   

  	
  Delaware

  
	
  HRI Churchrock, Inc.

  	
   

  	
  Delaware

  
	
  Churchrock Venture, LLC

  	
   

  	
  Delaware

  

 

 

EXHIBIT B

 

LEGAL PROCEEDINGS

 

New Mexico Radioactive Material License

 

        In
the State of New Mexico, uranium recovery by ISR technology requires a
radioactive material (uranium recovery) license issued by the United States
Nuclear Regulatory Commission (the “NRC” or the “Commission”). We applied for
one license covering the properties located in both the Church Rock and
Crownpoint districts collectively known as the Crownpoint Uranium Project
(CUP). The Commission issued a radioactive material (uranium recovery) license
for the CUP in January 1998 that allowed licensed ISR operations to begin
in the Church Rock district. In mid-1998, the Commission determined that
certain interested stakeholders who requested an NRC administrative hearing had
standing to raise certain objections to the license. A panel of Administrative
Law Judges (NRC’s Atomic Safety and Licensing Board (hereinafter “Licensing
Board”)) conducted a hearing during 1999. The Licensing Board upheld the Church
Rock Section 8 portion of the NRC license and granted our request to defer
any dispute on the remaining CUP properties until we make a decision whether to
mine these other properties.

 

        The
Licensing Board’s ruling was then appealed to the full Commission. On January 31,
2000, the Commission issued an order concurring with the technical,
substantive, and legal findings of the Licensing Board, but the Commission also
determined that we were required to submit restoration action plans for each
CUP project site and that we must proceed with the hearing process for the
other New Mexico properties beyond Church Rock Section 8. Subsequently,
the administrative hearing was held in abeyance until 2004, pursuant to
NRC-supervised settlement negotiations between the parties.

 

        In
February 2004, the Licensing Board issued an order, which concluded that
we must make three specific changes to our submitted restoration action plan
for Church Rock Section 8 in order to commence mining operations at Church
Rock Section 8. The Commission accepted our petition for review on two of
the three issues and subsequently overruled the Licensing Board on these
issues. Then, the parties agreed to truncate the number and scope of the issues
remaining for consideration at the remaining three CUP project sites. Since
then, the Licensing Board and the full Commission has endorsed our license and
its requirements for the CUP.

 

        In
summary, all contested issues regarding the CUP were decided by the Licensing
Board in our favor, with a few minor amendments, and affirmed on appeal by the
full Commission. Intervenors have appealed the Commission’s final approved
action to the United States Court of Appeals for the Tenth Circuit. We have
intervened on behalf of NRC to defend the license. All required legal briefs
have been filed by all parties in this proceeding and oral argument is expected
to be scheduled in mid-2008.

 

New Mexico UIC Permit

 

        The
State of New Mexico, the USEPA, and the Navajo Nation are engaged in a
jurisdictional dispute as to which regulatory entity (i.e., USEPA or the
State of New Mexico) has the authority to issue Underground Injection Control (“UIC”)
program permits, which are required to mine the Church Rock Section 8
property. The dispute was taken to the United States Court of Appeals for the
Tenth Circuit, which, in January 2000, remanded to the USEPA the issue
whether the Section 8 Church Rock property was Indian Country. In February 2007,
the USEPA issued a decision finding that the Church Rock Section 8
property is Indian country and that the USEPA is the proper authority to issue
the UIC permit. We have appealed that decision to the United States Court of
Appeals for the Tenth Circuit. The decision can be accessed at the USEPA Region
9 website at http://www.epa.gov/region09/water/groundwater/permit-determination.html.
All required legal briefs have been filed in this proceeding and we are waiting
for the Court to schedule oral argument.

 

Bonding for Texas Groundwater Restoration Obligations

 

        In
March, 2004, the Company entered into the Groundwater Restoration Performance
Agreement (GRPA), with the Texas Department of Health (“TDH”), later renamed
the Texas Department of State Health Services (“DSHS”), the Texas Commission on
Environmental Quality (TCEQ) and United States Fidelity and Guaranty Insurance
Company as a means of funding the Company’s ongoing groundwater restoration at
the Kingsville Dome and Rosita mine sites at specified treatment rates,
utilizing a portion of the Company’s cash flow from sales of uranium from the
Vasquez site as a substitute for additional bonding. Although Kleberg County
and an ad hoc 

 

 

citizen
group brought suit in April, 2004 to challenge the GRPA, Kleberg County settled
with the Company and withdrew its support and funding of the suit in December,
2004. In June, 2007, DSHS’ regulatory authority over uranium recovery
operations, including its oversight of groundwater restoration bonds posted for
uranium mining operations was transferred to TCEQ; and, on August 31,
2007, the GRPA expired according to its terms. The citizen group has taken no
further action to pursue the suit.

 

Dispute over Kleberg County Settlement Agreement

 

        In
February, 2007, Kleberg County, Texas advised the Company that the County had
retained counsel to investigate its remedies, including injunctive relief
against new uranium mining at the Company’s Kingsville Dome mine site. The
dispute relates to differing interpretations of the Company’s December, 2004
settlement agreement with Kleberg County as to the level of groundwater restoration
the Company agreed to achieve in Kingsville Dome production areas 1 and 2.
Seeking to resolve these issues amicably, the Company elected to defer briefly
the startup of production at the new wellfield. When the negotiations failed,
the Company notified the County of its intent to begin new production. The
Company believes it is in full compliance and engaged in a mediation of this
dispute. On September 28, 2007, after negotiations had stalled, the
Company filed suit against the County for declaratory relief interpreting the
Settlement Agreement. The County answered the suit with a general denial but
has not asserted a counterclaim for relief against the Company. Neither party
has pressed the matter further; and the Company does not anticipate this dispute
will interfere with its mining at Kingsville Dome.

 

Kingsville Dome Production Disposal Well Permit renewals and
Production Area Authorization 3

 

        After
an August, 2005 hearing, the Texas Commission on Environmental Quality (“TCEQ”)
voted unanimously February 22, 2006 to renew the Company’s disposal well
permits, WDW-247 and WDW-248, and to issue Kingsville Dome Production Area
Authorization 3 (“PAA 3”). A citizens group and a Ms. Garcia filed for
judicial review of the TCEQ action. The Texas Attorney General answered in
defense of TCEQ; and, the Company has intervened to defend the TCEQ. The two
cases have been consolidated; a judge has been assigned; and, in June, 2007,
the TCEQ submitted its administrative record for review.

 

        In
June, 2007 an attorney claiming to have been newly engaged by a plaintiff, Ms. Garcia,
notified all parties that Garcia wished to withdraw from the litigation and
requested that no further action be taken and her action was dismissed. On June 27,
2007, Garcia’s original counsel moved to appoint a guardian or representative
for Ms. Garcia. The Company challenged the sufficiency of the request for
appointment of a guardian or representative for Ms. Garcia; and Ms. Garcia’s
original counsel set his motion for hearing in August, 2007. Before the hearing
date, original counsel for Ms. Garcia, tentatively rescheduled the hearing
for October 24, 2007 and then canceled that hearing date. No further
action on the matter has been scheduled.

 

        The
permits and production area authorization issued by TCEQ remain effective until
and unless overturned by a reviewing Court; and, the Company believes the TCEQ
action issuing the permits and production area authorization is well-founded
and will be affirmed when considered on the merits.

 

Navajo EPA letter and UNC Demand for Indemnity

 

        By
letter dated January 23, 2008, the Navajo Nation Environmental Protection
Agency (NNEPA) sent a document dated September 2007 titled “Radiological
Scoping Survey Summary Report For The Old Church Rock Mine Site” (Survey
Report) to Hydro Resources Inc (HRI) and United Nuclear Corporation and General
Electric (UNC/GE). The Survey Report was reportedly prepared in response to a
claim by NNEPA against HRI and UNC/GE for potential liability for uranium
contaminated materials present on HRI’s Church Rock Mine Site. NNEPA requested
HRI and UNC/GE to undertake a “comprehensive and detailed characterization” of
HRI’s Church Rock Mine Site and adjacent lease areas, as recommended in the
Survey Report.

 

        By
letter dated January 29, 2008, UNC and GE, pursuant to a certain
Supplemental Purchase Agreement and Guarantee, demanded that HRI and Uranium
Resources Inc (URI) defend and indemnify it for all loss, cost, expense,
liabilities and obligations that have been or will be incurred or sustained by
GE and UNC with respect to the request asserted by NNEPA.

 

        The
scope and potential cost of complying with the request asserted by NNEPA are
presently unknown. HRI and URI have requested supplemental information from
NNEPA and are evaluating the basis for the demand asserted by UNC/GE.

 

 

Other

 

        On
July 13, 2007, Juan Gonzalez, an employee of a drilling contractor engaged
by the Company, was killed when the drill rig on which he was making repairs
backed over him. His heirs have filed claims against the drilling company and
us. Our insurance carrier is defending the matter on our behalf. We believe we
have meritorious defenses to the claims and that, in any event, we have
adequate insurance to cover the matter.

 

        The
Company is subject to periodic inspection by certain regulatory agencies for
the purpose of determining compliance by the Company with the conditions of its
licenses. In the ordinary course of business, minor violations may occur;
however, these are not expected to cause material expenditures.

 

 

APPENDIX I

 

SUMMARY
INSTRUCTION SHEET FOR PURCHASER

 

(to
be read in conjunction with the entire

Purchase Agreement which follows)

 

A.            Complete the following items on BOTH Purchase Agreements (Sign two
originals):

 

1.        Signature
Page:

 

(i)          Name
of Purchaser (Individual or Institution)

 

(ii)         Name
of Individual representing Purchaser (if an Institution)

 

(iii)        Title
of Individual representing Purchaser (if an Institution)

 

(iv)       Signature
of Individual Purchaser or Individual representing Purchaser

 

2.         Appendix
I - Securities Certificate Questionnaire/Registration Statement Questionnaire:

 

Provide the
information requested by the Securities Certificate Questionnaire and the
Registration Statement Questionnaire.

 

3.        Return BOTH properly completed and signed Purchase
Agreements including the properly completed Appendix I to (initially by
facsimile with original by overnight delivery):

 

	
   

  	
  Oppenheimer & Co.
  Inc.

  
	
   

  	
  125 Broad Street

  
	
   

  	
  New York, NY 10004

  
	
   

  	
  Attention: Jessica
  Cracolici

  
	
   

  	
  Facsimile: (212) 667-6141

  

 

B.              Instructions regarding the
transfer of funds for the purchase of Securities will be sent by facsimile to
the Purchaser by the Placement Agent at a later date.

 

C.              Upon the resale of the Shares, the
Warrant Shares or the Ratchet Warrant Shares by the Purchasers after the
Registration Statements covering the Shares, the Warrant Shares and the Ratchet
Warrant Shares are effective, as described in the Purchase Agreement, the
Purchaser:

 

(i)            must
deliver a current prospectus of the Company to the buyer (prospectuses must be
obtained from the Company at the Purchaser’s request); and

 

 

(ii)           must
send a letter to the Company so that the Shares, the Warrant Shares and the
Ratchet Warrant Shares may be properly transferred.

 

 

	
   

  	
  Appendix I

  (Page 1 of 4)

  

 

Uranium
Resources, Inc.

SECURITIES
CERTIFICATE QUESTIONNAIRE

 

Pursuant
to Section 3 of the Agreement, please provide us with the following
information:

 

	
  1.

  	
  The exact name that your Securities are to be registered in (this is the name that will appear on
  your stock certificate(s)). You may use a nominee name if appropriate:

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  The relationship between the Purchaser of
  the Securities and the
  Registered Holder listed in response to item 1 above:

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  The mailing address of the Registered
  Holder listed in response to item 1 above:

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  The Social Security Number or Tax
  Identification Number of the Registered Holder listed in response to item 1
  above:

  	
   

  

 

 

	
   

  	
  Appendix I

  (Page 2 of 4)

  

 

Uranium
Resources, Inc.

REGISTRATION
STATEMENT QUESTIONNAIRE

 

In
connection with the preparation of the Registration Statement, please provide
us with the following information:

 

SECTION 1.     Pursuant to the “Selling Stockholder”
section of the Registration Statement, please state your or your organization’s
name exactly as it should appear in the Registration Statement:

 

 

SECTION 2.     Please provide the number of shares that
you or your organization will own immediately after Closing, including those
securities purchased by you or your organization pursuant to this Purchase
Agreement and those securities purchased by you or your organization through
other transactions and provide the number of securities that you have or your
organization has the right to acquire within 60 days of Closing:

 

 

SECTION 3.     Have you or your organization had any
position, office or other material relationship within the past three years
with the Company or its affiliates?

 

	
   

  	
  o  Yes

  	
  o  No

  

 

If
yes, please indicate the nature of any such relationships below:

 

 

	
   

  	
  Appendix I

  (Page 3 of 4)

  

 

SECTION 4.     Are you (i) an NASD Member (see
definition), (ii) a Controlling (see definition) shareholder of an NASD
Member, (iii) a Person Associated with a Member of the NASD (see
definition), or (iv) an Underwriter or a Related Person (see definition)
with respect to the proposed offering; or (b) do you own any shares or
other securities of any NASD Member not purchased in the open market; or (c) have
you made any outstanding subordinated loans to any NASD Member?

 

	
   

  	
  Answer:  o

  	
  Yes

  	
  o
  No

  	
  If “yes,” please describe
  below

  

 

 

	
   

  	
  Appendix I

  (Page 4 of 4)

  

 

NASD
Member.  The term “NASD
member” means either any broker or dealer admitted to membership in the
National Association of Securities Dealers, Inc. (“NASD”).  (NASD Manual, By-laws of NASD Regulation, Inc.
Article I, Definitions)

 

Control.  The term “control” (including the terms “controlling,”
“controlled by” and “under common control with”) means the possession, direct
or indirect, of the power, either individually or with others, to direct or
cause the direction of the management and policies of a person, whether through
the ownership of voting securities, by contract, or otherwise.  (Rule 405 under the Securities Act of
1933, as amended)

 

Person
Associated with a member of the NASD.  The term “person associated with a member of
the NASD” means every sole proprietor, partner, officer, director, branch
manager or executive representative of any NASD Member, or any natural person
occupying a similar status or performing similar functions, or any natural
person engaged in the investment banking or securities business who is directly
or indirectly controlling or controlled by a NASD Member, whether or not such
person is registered or exempt from registration with the NASD pursuant to its
bylaws.  (NASD Manual, By-laws of NASD
Regulation, Inc. Article I, Definitions)

 

Underwriter
or a Related Person. 
The term “underwriter or a related person” means, with respect to a
proposed offering, underwriters, underwriters’ counsel, financial consultants
and advisors, finders, members of the selling or distribution group, and any
and all other persons associated with or related to any of such persons.  (NASD Interpretation)Exhibit 10.2

 

URANIUM RESOURCES, INC.

 

AMENDED AND RESTATED

PLACEMENT AGENCY AGREEMENT

 

 

May 13, 2008

 

Oppenheimer & Co. Inc.

300 Madison Avenue, 3rd Floor

New York, New York 10017

 

Ladies and Gentlemen:

 

Uranium Resources, Inc., a Delaware
corporation (the “Company”), proposes, subject to the terms and conditions
contained herein, to issue and sell (i) shares (the “Shares”) of common
stock, $0.001 par value (the “Common Stock”), (ii) warrants to purchase
shares of Common Stock (the “Warrants”), and (iii) ratchet warrants to
purchase shares of Common Stock (the “Ratchet Warrants” and, together with the
Shares and the Warrants, the “Securities”), directly to certain purchasers
(collectively, the “Purchasers”), by executing a Securities Purchase Agreement
with each Purchaser, substantially in the form attached hereto as Exhibit A
(the “Securities Purchase Agreement”). 
The Company has engaged Oppenheimer & Co. Inc. as its exclusive
placement agent (the “Placement Agent”) to introduce the Company to the
Purchasers.  The Securities are more
fully described in the Securities Purchase Agreement, the Warrants, the Ratchet
Warrants, and the Memorandum (as defined below).

 

The Company has prepared a Confidential
Private Placement Memorandum dated April 15, 2008, as supplemented by the
Supplement to Confidential Private Placement Memorandum and the Supplement to
Confidential Private Placement Memorandum dated May 13, 2008
(collectively, with all exhibits thereto and the documents incorporated by
reference therein, and as further supplemented or amended, if applicable, the “Memorandum”),
relating to the offering of the Securities.

 

In connection with its duties as the
Placement Agent, the Company hereby confirms that the Placement Agent is
authorized to distribute only the Memorandum and the documents incorporated by
reference therein (as from time to time amended or supplemented if the Company
furnishes amendments or supplements thereto to the Placement Agent) and no
other documents.

 

Section 1.               Agreement to Act as Placement
Agent.

 

1.1           On the basis of the representations,
warranties and agreements contained in, and subject to the terms and conditions
of, this Agreement and the letter agreement dated as of April 8, 2008
between the Company and the Placement Agent, as amended or modified (the “Letter
Agreement”), the Placement Agent agrees to act as the Company’s exclusive
placement agent in connection with the issuance and sale of the Securities by
the Company to the Purchasers.

 

1

 

(a)           It is understood that the Placement
Agent’s obligations under this Agreement are strictly on a reasonable best
efforts basis and that the consummation of the transactions contemplated hereby
and by the Securities Purchase Agreement will be subject to, among other
things, market conditions.

 

(b)           The Placement Agent shall have no
authority to bind the Company.

 

(c)           The Company acknowledges and agrees
that this is not an agreement by the Placement Agent or any of its affiliates
to underwrite or purchase any securities or otherwise provide any financing.

 

(d)           The Company acknowledges and agrees
that the Placement Agent has acted and will act on an arm’s length basis and
has not acted and will not be acting as financial advisor, agent or fiduciary
to the Company or any other person. 
Additionally, the Company acknowledges and agrees that the Placement
Agent has not and will not advise the Company or any other person as to any
legal, tax, investment, accounting or regulatory matters in any jurisdiction.  The Company has consulted with its own
advisors concerning such matters and shall be responsible for making its own
independent investigation and appraisal of the transactions contemplated
hereby, and the Placement Agent shall have no responsibility or liability to
the Company or any other person with respect thereto, whether arising prior to
or after the date hereof.  Any review by
the Placement Agent of the Company, the transactions contemplated hereby or
other matters relating to such transactions have been and will be performed
solely for the benefit of the Placement Agent and shall not be on behalf of the
Company.  The Company agrees that it will
not claim that the Placement Agent has rendered advisory services of any nature
or respect, or owes a fiduciary duty to the Company or any other person in
connection with any such transaction or the process leading thereto.

 

1.2           Payment by the Purchasers of the
purchase price for, and delivery of, the Securities will be made in accordance
with the terms and conditions of the Securities Purchase Agreement on the
Closing Date (as defined in the Securities Purchase Agreement).

 

(a)           Payment of the purchase price for the
Securities shall be made by the Purchasers directly to, or upon the order of,
the Company by wire transfer in Federal (same day) funds.  The Securities shall be registered in such
name or names and shall be in such denominations, as the Placement Agent may
request, on behalf of the Purchasers, at least one business day before the
Closing Date.

 

(b)           During the term of this Agreement,
pursuant to Section 7 herein, the Company will not, and will not permit
its representatives to, other than in coordination with the Placement Agent,
contact or solicit institutions, corporations or other entities or persons as
potential purchasers of the Securities. 
Furthermore, the Company agrees that all inquiries, whether direct or
indirect, from prospective Purchasers during the term of this Agreement will be
referred to the Placement Agent, and as a result will be deemed to have been
contacted by the Placement Agent in connection with its duties under this
Agreement.

 

2

 

1.3           As compensation for the services
hereunder, the Company agrees to pay the Placement Agent the fees specified by
the Letter Agreement.

 

1.4           In addition to any obligation under
the Letter Agreement, the Company will pay for, or reimburse the Placement
Agent if paid for, all reasonable out-of-pocket costs and expenses incident to
the performance of the obligations of the Company under this Agreement,
including those relating to:  (i) the
preparation of this Agreement, the preparation and distribution of the
Memorandum and the preparation and filing of the registration statements on Form S-3
or other appropriate form covering the resale by the Purchasers (each, a “Registration
Statement”) of the Shares, the shares of Common Stock underlying the Warrants
(the “Warrant Shares”), and the shares of Common Stock underlying the Ratchet
Warrants (the “Ratchet Warrant Shares”), including all exhibits thereto, any
preliminary prospectuses, the prospectuses, all amendments and supplements to
the Registration Statements and the prospectuses and any document incorporated
by reference therein; (ii) the preparation and delivery of certificates
for the Shares, the Warrant Shares and the Ratchet Warrant Shares; (iii) the
registration or qualification of the Securities, the Warrant Shares and the
Ratchet Warrant Shares for offer and sale under the securities or Blue Sky laws
of the various jurisdictions referred to in Section 4.3, including the
fees and disbursements of counsel for the Placement Agent in connection with
such registration and qualification and the preparation, printing, distribution
and shipment of preliminary and supplementary Blue Sky memoranda; (iv) the
furnishing (including costs of shipping and mailing) to the Placement Agent of
copies of the Memorandum and all amendments or supplements to the Memorandum,
and of the several documents required by this Agreement to be so furnished, as
may be reasonably requested for use in connection with the offering and sale of
the Securities; (v) inclusion of the Shares, the Warrant Shares and the
Ratchet Warrant Shares for quotation on the NASDAQ Global Market; (vi) the
costs and expenses of the Company relating to investor presentations in
connection with the marketing of the offering of the Securities, including,
without limitation, expenses associated with the production of slides and
graphics, fees and expenses of any consultants engaged in connection with the
presentations, travel and lodging expenses of the representatives and officers
of the Company and any such consultants, and the cost of any aircraft chartered
in connection with any investor presentations; (vii) all transfer taxes,
if any, with respect to the sale and delivery of the Securities by the Company;
and (viii) fees, disbursements and other charges of counsel to the
Placement Agent.

 

Section 2.               Representations, Warranties
and Covenants of the Company.  The
Company hereby represents and warrants with respect to itself and each of its
subsidiaries to, and covenants with, the Placement Agent on the date hereof
(except with respect to Section 2.1, which representation, warranty and
covenant shall be made as of each Closing Date) and as of each Closing Date (or
such other date specified below) as follows:

 

2.1           Each director and executive officer
of the Company listed on Schedule I has delivered to the Placement Agent his
enforceable written lock-up agreement in the form attached to this Agreement as
Exhibit B hereto (“Lock-Up Agreement”).

 

2.2           Commencing upon the signing of the
Letter Agreement between the Company and the Placement Agent and ending after
the close of trading on the NASDAQ Global Market on the date which is the later
of (i) the effective date of the Registration Statement for the Shares and
the Warrant Shares or (ii) the ninetieth day following the Closing Date
(the “Lock-Up 

 

3

 

Period”), the
Company will not, without prior written consent of the Placement Agent, sell,
contract to sell or otherwise dispose of or issue any securities of the
Company, except pursuant to previously issued options, any agreements providing
for anti-dilution or other stock purchase or share issuance rights in existence
on the date hereof, any employee benefit or similar plan of the Company in
existence on the date hereof.

 

2.3           The Company hereby makes the
representations and warranties made by it in Section 4 of the Securities
Purchase Agreements to the same extent as if such representations and
warranties had been made in full herein and made directly to the Placement
Agent.

 

2.4           The Company hereby acknowledges and
agrees with the acknowledgments and agreements and makes the covenants of Section 5.12
of the Securities Purchase Agreements to the same extent as if such terms had
been made in full herein and made directly with the Placement Agent and the
Placement Agent shall be entitled to rely on same.

 

Section 3.               Conditions of the Placement
Agent’s Obligations.  The obligations
of the Placement Agent under this Agreement are subject to each of the
following terms and conditions:

 

3.1           The representations and warranties of
the Company contained in the Securities Purchase Agreements, this Agreement and
in the certificates delivered pursuant to Section 3.2 below shall be true
and correct when made and on and as of such Closing Date as if made on such
date.  The Company shall have performed,
in all material respects, all covenants and agreements and satisfied, in all
material respects, all the conditions contained in this Agreement and contained
in the Securities Purchase Agreements required to be performed or satisfied by
it at or before such Closing Date.

 

3.2           The Placement Agent shall have
received on such Closing Date certificates, addressed to the Placement Agent
and dated such Closing Date, of the chief executive officer and the chief
financial officer of the Company (a) to the effect that: (i) the
representations and warranties of the Company in this Agreement and the
Securities Purchase Agreements were true and correct when made and are true and
correct as of such Closing Date; and (ii) the Company has performed, in
all material respects, all covenants and agreements and satisfied, in all
material respects, all the conditions contained in this Agreement and each
Securities Purchase Agreement; and (b) in form and substance reasonably
satisfactory to the Placement Agent, containing statements and information with
respect to certain information regarding mining, mineralized materials of
uranium deposits, uranium production, leases and related financial information
contained in the Memorandum.

 

3.3           The Placement Agent shall have
received on such Closing Date from Baker & Hostetler LLP, counsel for
the Company, an opinion, addressed to the Placement Agent and each of the
Purchasers and dated such Closing Date, in form and substance reasonably
satisfactory to the Placement Agent and its counsel.

 

3.4           The Placement Agent shall have received
on such Closing Date a signed letter from Hein & Associates, LLP
addressed to the Placement Agent, in form and substance reasonably satisfactory
to the Placement Agent containing statements and information of the type 

 

4

 

ordinarily
included in accountants’ “comfort letters” to underwriters with respect to the
financial statements and certain financial information contained in the
Memorandum.

 

3.5           The Placement Agent shall have
received on such Closing Date a signed letter from Behre Dolbear &
Company (USA), Inc. addressed to the Placement Agent, in form and
substance reasonably satisfactory to the Placement Agent, containing statements
and information with respect to certain information regarding the Company’s
non-reserve mineralized materials of uranium deposits contained in the
Memorandum.

 

3.6           The Placement Agent shall have
received copies of the Lock-Up Agreements executed by each director and
executive officer of the Company listed on Schedule I.

 

3.7           The Shares and the Warrant Shares
shall have been approved for quotation on the NASDAQ Global Market, subject
only to official notice of issuance.  In
addition, on the date of their issuance, the Ratchet Warrant Shares shall have
been approved for quotation on the NASDAQ Global Market, subject only to
official notice of issuance.

 

3.8           The Company shall have furnished or
caused to be furnished to the Placement Agent such further certificates or
documents as the Placement Agent shall have reasonably requested.

 

Section 4.               Covenants of the Company.

 

4.1           The Company will comply with the
registration procedures set forth in Section 7 of the Securities Purchase
Agreement.

 

4.2           The Company shall cooperate with the
Placement Agent and its counsel in endeavoring to qualify the Securities, the
Warrant Shares and the Ratchet Warrant Shares for offer and sale in connection
with the offering under the laws of such jurisdictions as the Placement Agent
may reasonably designate and shall maintain such qualifications in effect so
long as required for the distribution of the Securities, the Warrant Shares and
the Ratchet Warrant Shares; provided, however, that the Company shall not be
required in connection therewith, as a condition thereof, to qualify as a
foreign corporation in any jurisdiction where it is not so qualified as of the
date hereof or to execute a general consent to service of process in any
jurisdiction or subject itself to taxation as doing business in any
jurisdiction where it is not so subject as of the date hereof.

 

4.3           The Company shall make all filings
required under applicable securities laws and by the NASDAQ Global Market
(including any required registration under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)) in connection with the initial sale of the
Securities to the Purchasers in each jurisdiction where any such sale is made.

 

4.4           The Company shall, immediately upon
discovery of (a) any material change, actual or contemplated, of which it
is or becomes aware, or (b) any fact or information which the Company
believes is material or could require the making of any amendment, supplement
or revision to any materials used in connection with the offering, issuance and
sale of the Securities (an “Amendment”), in each case, relating to the
securities, assets, business (including business prospects and contemplated
acquisitions) or affairs of the Company, or any of its subsidiaries, its 

 

5

 

affiliates or
the information provided to the Placement Agent concerning the Company or any
of its subsidiaries, or the offering, issuance and sale of the Securities,

 

(a)           notify the Placement Agent in writing
of the full particulars,

 

(b)           with the Placement Agent’s and its
counsel’s participation, prepare and distribute the Amendment in the manner
permitted or required by the applicable securities or Blue Sky laws of the
various jurisdictions referred to in Section 4.3, and

 

(c)           provide the Placement Agent with that
number of copies of the Amendment as the Placement Agent may reasonably
request.

 

The Company shall discuss with the Placement
Agent any such change, event or fact which is of such a nature that there is
reasonable doubt as to whether such notice in writing need be given.

 

4.5           Prior to the Closing Date, the
Company will issue no press release or other communications directly or
indirectly and hold no press conference with respect to the Company, the
condition, financial or otherwise, or the earnings, business affairs or
business prospects of the Company, or the offering of the Securities without
the prior written consent of the Placement Agent unless in the reasonable
judgment of the Company and its counsel, and after prior notification to the
Placement Agent, such press release or communication is required by law.

 

4.6           The Company will apply the net
proceeds from the offering of the Securities substantially in the manner set
forth under “Use of Proceeds” in the Memorandum.

 

4.7           The Company will pay, or reimburse if
paid by the Placement Agent, whether or not the transactions contemplated
hereby are consummated or this Agreement is terminated, any monies owing to the
Placement Agent pursuant to Section 1 of this Agreement and pursuant to
the Letter Agreement.

 

4.8           At the time of delivery thereof to
each Purchaser and on the Closing Date, the Memorandum will comply with the
requirements of the applicable securities and Blue Sky laws of the various
jurisdictions referred to in Section 4.3.

 

Section 5.               Indemnification.

 

5.1           The Company agrees
to indemnify and hold harmless the Placement Agent, its affiliates and present
and former directors, officers, employees, agents, advisers and each person, if
any, who controls, within the meaning of Section 15 of the Securities Act
of 1933, as amended (the “Securities Act”) or Section 20 of the Exchange
Act, the Placement Agent (each such person, an “indemnified party”) to the
extent permitted by law from and against any and all losses, claims, damages
and liabilities, joint or several (collectively, the “Damages”), to which they,
or any of them, may become subject in connection with, relating to or arising
from or based in whole or in part upon (a) any transaction contemplated by
this Agreement or the engagement of or performance of services by an
indemnified party hereunder, (b) any untrue statement or alleged untrue
statement of a material fact contained in the Memorandum or in the documents
incorporated by reference therein, or in any Registration Statement or the
prospectus included 

 

6

 

therein or any
amendment or supplement thereto, or in any Blue Sky application or other
information or other documents executed by the Company filed in any state or
other jurisdiction referred to in Section 4.2 to qualify any or all of the
Securities, the Warrant Shares or the Ratchet Warrant Shares under the
securities laws thereof (or as may be otherwise required) (any such
application, document or information being hereinafter referred to as a “Blue
Sky Application”) or any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances under which they were
made, or (c) any inaccuracy in the representations or warranties of the
Company contained in this Agreement, or any failure of the Company to perform
its obligations hereunder or under law, and will promptly reimburse each
indemnified party for all fees and expenses (including any reasonable fees and
expenses of counsel) incurred in connection with investigating, preparing,
pursuing or defending any threatened or pending claim, action, proceeding or
investigation (collectively, the “Proceedings”) and any amount paid in
settlement of, any action, suit or proceeding or any claim asserted therefrom,
whether or not such indemnified party is a formal party to such Proceeding, and
in enforcing this Agreement.  The Company
shall not be liable to any such indemnified party to the extent that any
Damages in connection with (a) above are found in a final non-appealable
judgment by a court of competent jurisdiction to have resulted solely from the
gross negligence or willful misconduct of the indemnified party seeking
indemnification hereunder.  The Company
also agrees that no indemnified party shall have any liability (whether direct
or indirect, in contract, tort or otherwise) to the Company or any person
asserting claims on behalf of the Company arising out of or in connection with
any transactions contemplated by this Agreement or the engagement of or
performance of services by any indemnified party hereunder except to the extent
that any Damages are found in a final non-appealable judgment by a court of
competent jurisdiction to have resulted solely from the gross negligence or
willful misconduct of such indemnified party.

 

5.2           Any party that
proposes to assert the right to be indemnified under this Section 5 will,
promptly after receipt of notice of commencement of any action, suit or
proceeding against such party in respect of which a claim is to be made against
an indemnifying party or parties under this Section, notify each such
indemnifying party of the commencement of such action, suit or proceeding,
enclosing a copy of all papers served. 
No indemnification provided for in this Section 5 shall be
available to any party who shall fail to give notice as provided in this Section 5.2
to the extent the party to whom notice was not given was materially prejudiced
by the failure to give such notice but the omission to notify such indemnifying
party of any such action, suit or proceeding shall not relieve it from any
liability that it may have to any indemnified party for contribution or
otherwise than under this Section.  In
case any such action, suit or proceeding shall be brought against any
indemnified party and it shall notify the indemnifying party of the
commencement thereof, the indemnifying party shall be entitled to participate
in, and, to the extent that it shall wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, with counsel
reasonably satisfactory to such indemnified party, and after notice from the
indemnifying party to such indemnified party of its election to assume the
defense thereof and the approval by the indemnified party of such counsel, the
indemnifying party shall not be liable to such indemnified party for any legal
or other expenses, except as provided below and except for the reasonable costs
of investigation subsequently incurred by such indemnified party in connection
with the defense thereof.  The
indemnified party shall have the right to employ its counsel in any such
action, but the fees and expenses of such counsel shall be at the expense of
such indemnified party unless (i) the employment of counsel by such 

 

7

 

indemnified
party has been authorized in writing by the indemnifying parties, (ii) the
indemnified party shall have been advised by counsel that there may be one or
more legal defenses available to it which are different from or in addition to
those available to the indemnifying party (in which case the indemnifying
parties shall not have the right to direct the defense of such action on behalf
of the indemnified party) or (iii) the indemnifying parties shall not have
employed counsel to assume the defense of such action within a reasonable time
after notice of the commencement thereof, in each of which cases the fees and
expenses of counsel shall be at the expense of the indemnifying parties.  All such fees and expenses will be reimbursed
by the indemnifying party promptly as they are incurred.  The indemnifying party may not without the
prior written consent of the indemnified party (which consent may not be unreasonably
withheld), enter into any waiver, release, settlement or compromise or consent
to the entry of any judgment in any Proceeding in respect of which
indemnification has been sought hereunder (whether or not such indemnified
party is a formal party to such Proceeding), unless such waiver, release,
settlement, compromise or consent (a) includes an unconditional release of
the Placement Agent and each indemnified party from all liability arising out
of such Proceeding and (b) does not contain any factual or legal admission
by or with respect to any indemnified party or any adverse statement with
respect to the character, professionalism, expertise or reputation of any
indemnified party or any action or inaction of any indemnified party.  An indemnifying party shall not be liable for
any settlement of any action, suit, and proceeding or claim effected without
its written consent, which consent shall not be unreasonably withheld or
delayed.

 

Section 6.               Contribution. 
In order to provide for just and equitable contribution in circumstances
in which the indemnification provided for in Section 5 is due in
accordance with its terms but for any reason is unavailable to or insufficient
to hold harmless an indemnified party in respect to any Damages or Expenses
referred to therein, then each indemnifying party shall contribute to the
aggregate Damages and Expenses (including any amount paid in settlement of any
Proceeding) paid or payable by such indemnified party, as incurred, in such
proportion as is appropriate to reflect the relative benefits received by the
Company and/or its security holders on the one hand and the Placement Agent on
the other hand, in connection with the matters covered by this Agreement or, if
such allocation is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to above but
also the relative faults of the Company and/or its security holders on the one
hand and the Placement Agent on the other hand as well as any other relevant
equitable considerations.  The Company
and the Placement Agent agree that it would not be just and equitable if
contribution pursuant to this Section 6 were determined by any method of
allocation which does not take account of the equitable considerations referred
to above.  The aggregate amount of
Damages and Expenses incurred by an indemnified party and referred to above
shall be deemed to include any legal or other expenses reasonably incurred by
such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such
transaction or any such untrue or alleged untrue statement or omission or
alleged omission.  The Company agrees
that for purposes of this Section 6, the relative benefits to the Company
and/or its security holders and the Placement Agent in connection with the
matters covered by this Agreement will be deemed to be in the same proportion
that the total value paid or received or to be paid or received by the Company
and/or its security holders in connection with the transactions contemplated by
this Agreement, whether or not consummated, bears to the 

 

8

 

fees paid to the Placement Agent under this Agreement and the Letter
Agreement; provided, that in no event will the total contribution of all
indemnified parties to all such Damages and Expenses exceed the amount of fees
actually received and retained by the Placement Agent under this Agreement and
the Letter Agreement (excluding any amounts received by the Placement Agent as
reimbursement of Expenses).  Relative
fault shall be determined by reference to, among other things, whether any alleged
untrue statement or omission or any alleged conduct relates to information
provided by the Company or other conduct by the Company (or its employees or
other agents) on the one hand, or by the Placement Agent, on the other hand.

 

For purposes of this Section 6, each person, if any, who controls,
within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act, the Placement Agent shall have the same rights to
contribution as the Placement Agent.  Any
party entitled to contribution, promptly after receipt of notice of commencement
of any action against such party in respect of which a claim for contribution
may be under this Section 6, shall notify any such party or parties from
whom contribution may be sought, but the omission so to notify shall not
relieve the party or parties from whom contribution may be sought from any
other obligation it or they may have under this Section 6.  No party shall be liable for contribution
with respect to any action, suit, proceeding or claim settled without its
written consent.

 

The indemnification, reimbursement and
contribution obligations of the Company under Sections 5 and 6 of this
Agreement will be in addition to any liability which the Company may have at
common law or otherwise to any indemnified party and will be binding and inure
to the benefit of any successors, assigns, heirs and personal representatives
of the Company or an indemnified party. 
The provisions of Sections 5 and 6 of this Agreement shall survive the
termination or modification of this Agreement.

 

Section 7.               Term; Termination.

 

7.1           This Agreement will commence on the
date hereof and terminate on the date on which a party receives written notice
of termination from another party or the date on which all services required to
be completed by the Placement Agent have been completed, and the Company shall
have paid to the Placement Agent all fees earned and reimbursed the Placement
Agent for all reasonable expenses incurred, in accordance with Section 1
hereof.

 

7.2           The Company or the Placement Agent
may terminate this Agreement at any time.

 

7.3           The Company agrees that this Section 7
and the provisions of this Agreement relating to the payment of fees,
reimbursement of expenses, indemnification and contribution, confidentiality,
waiver of the right to trial by jury, and the Letter Agreement will, subject to
the terms of the Letter Agreement, survive any termination of this Agreement.

 

Section 8.               Miscellaneous.

 

8.1           The respective agreements,
representations, warranties, indemnities and other statements of the Company
and the Placement Agent, as set forth in this Agreement or made by or on behalf
of them pursuant to this Agreement, shall remain in full force and effect,
regardless of any investigation (or any statement as to the results thereof)
made by or on behalf of the 

 

9

 

Placement
Agent or the Company or any of their respective officers, directors or
controlling persons referred to in Sections 5 and 6 hereof, and shall survive
delivery of and payment for the Securities.

 

8.2         This Agreement has been and is made for
the benefit of the Placement Agent, the Company and their respective successors
and assigns, and, to the extent expressed herein, for the benefit of persons
controlling the Placement Agent, or the Company, and directors and officers of
the Company, and their respective successors and assigns, and no other person
shall acquire or have any right under or by virtue of this Agreement.  The term “successors and assigns” shall not
include any Purchaser merely because of such purchase.

 

8.3         All notices and communications
hereunder shall be in writing and mailed or delivered or by electronic mail,
telephone or facsimile,

 

(a)          if
to the Placement Agent:

 

Oppenheimer & Co. Inc.

125 Broad Street

New York, New York 10004

Attention: Jessica Cracolici

Fax: (212) 667-6141

 

with a copy to

 

Morrison & Foerster LLP

1290 Avenue of the Americas

New York, New York 10104

Attention: Anna T. Pinedo, Esq.

Fax: (212) 468-7900

 

(b)          if
to the Company:

 

Uranium Resources, Inc.

405 State Highway 121 Bypass

Building A, Suite 110

Lewisville, Texas 75067

Attention: Thomas H. Ehrlich, Vice President and CFO

Fax: (972) 219-3311

 

with a copy to

 

Baker & Hostetler LLP

303 East 17th Avenue

Suite 1100

Denver, Colorado 80203

Attention:  Alfred C. Chidester

 

10

 

8.4           This Agreement will be governed by
and construed in accordance with the laws of the State of New York applicable
to agreements made and to be fully performed therein.  The Company irrevocably submits to the
jurisdiction of any court of the State of New York located in the City and
County of New York or in the United States District Court for the Southern
District of New York for the purpose of any suit, action or other proceeding
arising out of this Agreement or the engagement of the Placement Agent hereunder.

 

8.5           Each of the Company and the Placement
Agent hereby waives any right it may have to a trial by jury in respect of any
claim brought by or on behalf of either party based upon, arising out of or in
connection with this Agreement, or the transactions contemplated hereby.

 

8.6           This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.

 

8.7           This Agreement shall have no effect
on the Letter Agreement, which shall remain in full force and effect in
accordance with its terms.

 

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11

 

Please confirm that the foregoing correctly
sets forth the agreement among us.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  URANIUM RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Confirmed:

  	
   

  
	
   

  	
   

  
	
  OPPENHEIMER & CO. INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

Schedule I

 

List of Stockholders to Sign Lock-up

 

Craig S. Bartels

David N. Clark

Terence J. Cryan

Thomas H. Ehrlich

Leland O. Erdahl

George R. Ireland

Marvin K. Kaiser

William M. McKnight, Jr.

Mark S. Pelizza

Richard A. Van Horn

Paul K. Willmott

 

 

EXHIBIT A

 

FORM OF SECURITIES PURCHASE AGREEMENT

 

[ATTACHED]

 

 

EXHIBIT B

 

FORM OF LOCK-UP AGREEMENT

 

April     ,
2008

 

Oppenheimer & Co. Inc.

300 Madison Avenue, 3rd Floor

New York, New York 10017

 

Re:         Private Offering of
Common Stock and Warrants and Ratchet Warrants to Purchase Common Stock of
Uranium Resources, Inc.

 

Gentlemen:

 

The undersigned, a holder of common stock, $0.001 par value (“Common
Stock”) or rights to acquire Common Stock, of Uranium Resources, Inc. (the
“Company”) understands that the Company intends to issue Common Stock (the “Shares”)
and warrants (the “Warrants”) and ratchet warrants to purchase Common Stock in
a private placement described in a Confidential Private Placement Memorandum
(the “Offering”) and subsequently to file Registration Statements on Form S-3
with the Securities and Exchange Commission for the resale of Common Stock
(each, a “Registration Statement”).  The
undersigned further understands that you are contemplating entering into a
Placement Agency Agreement with the Company in connection with the Offering.

 

In order to induce the Company and you to enter into the Placement
Agency Agreement and to induce you to act as the Placement Agent in the
Offering, the undersigned agrees, for the benefit of the Company and you, as
the Placement Agent, that commencing upon the signing of the Placement Agency
Agreement, dated April 15, 2008 (the “Placement Agency Agreement”),
between the Company and the Placement Agent relating to the Offering and ending
after the close of trading on the NASDAQ Global Market on the date which is the
later of (a) the effective date of the Registration Statement for the
Shares and shares of Common Stock underlying the Warrants and (b) 90 days
subsequent to the Closing Date (as defined in the Placement Agency Agreement)
(the “Lock-Up Period”), the undersigned will not, without your prior written
consent, directly or indirectly, make any offer, sale, assignment, transfer,
encumbrance, contract to sell, grant of an option to purchase or other
disposition of any Common Stock beneficially owned (within the meaning of Rule 13d-3
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) by
the undersigned on the date hereof or hereafter acquired.  The foregoing sentence shall not apply to (a) bona
fide gifts, provided the recipient thereof agrees in writing with the Placement
Agent to be bound by the terms hereof, (b) dispositions to any trust for
the direct or indirect benefit of the undersigned and/or the immediate family
of the undersigned, provided that such trust agrees in writing with the
Placement Agent to be bound by the terms hereof, (c) sales of Common Stock
pursuant to the terms of a Rule 10b5-1 plan of the undersigned in
existence prior to the date hereof, if any, (d) the sale or transfer of
shares of Common Stock for cash to the extent necessary to pay taxes incurred
as a direct result of the exercise of options to purchase Common Stock after
the date hereof (which options were issued 

 

 

pursuant to the Company’s stock option plans and deferred compensation
plans), or (e) with respect to sales or purchases of Common Stock acquired
on the open market after the date of the Offering.

 

Notwithstanding the foregoing, if (x) during the last 17 days of
the Lock-Up Period the Company issues an earnings release or material news or a
material event relating to the Company occurs; or (y) prior to the
expiration of the Lock-Up Period, the Company announces that it will release
earnings results during the 16-day period beginning on the last day of the
90-day period; the restrictions imposed in this agreement shall continue to
apply until the expiration of the 18-day period beginning on the issuance of
the earnings release or the occurrence of the material news or material event;
provided, however, that this sentence shall not apply if the research published
or distributed on the Company is compliant under Rule 139 of the
Securities Act of 1933, as amended and the Company’s securities are actively
traded as defined in Rule 101(c)(1) of Regulation M of the Exchange
Act.

 

In addition, the undersigned hereby waives any rights the undersigned
may have to require registration of Common Stock in connection with the filing
of a registration statement relating to the Offering.  The undersigned further agrees that, during
the Lock-Up Period, the undersigned will not, without your prior written
consent, make any demand for, or exercise any right with respect to, the
registration of Common Stock of the Company or any securities convertible into
or exercisable or exchangeable for Common Stock, or warrants or other rights to
purchase Common Stock.

 

The undersigned confirms that he, she or it understands that the
Placement Agent and the Company will rely upon the representations set forth in
this agreement in proceeding with the Offering. 
This agreement shall be binding on the undersigned and his, her or its
respective successors, heirs, personal representatives and assigns.  The undersigned agrees and consents to the
entry of stop transfer instructions with the Company’s transfer agent against
the transfer of Common Stock or securities convertible into or exchangeable or
exercisable for Common Stock held by the undersigned except in compliance with
this agreement.

 

This agreement shall terminate and the undersigned shall be released
from the undersigned’s obligations hereunder if the Company does not proceed
with the Offering with the Placement Agent and notifies the Placement Agent in
writing of the same.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed Name and Title (if applicable):

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