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Exhibit 4.9  

URANIUM RESOURCES, INC.  

 
  DEFERRED COMPENSATION PLAN FOR 2004    
    

ARTICLE I

INTRODUCTION  

        1.1   This
Deferred Compensation Plan for 2004 (the "Plan") provides selected executive employees and directors of Uranium Resources, Inc. and its wholly owned
subsidiaries an opportunity to defer a portion of their compensation during 2004. 

        This
document constitutes the entire Plan. Any and all prior or contemporaneous oral or written communications hereby are superseded and abolished. 

ARTICLE II

DEFINITIONS AND GENERAL PROVISIONS  

	2.1
	"Code" means the Internal Revenue Code of 1986, as amended and then in effect.

	2.2
	"Committee" means the Plan Committee described in Article VII hereof.

	2.3
	"Common Stock" means the shares of the Corporation's common stock, $.001 par value per share.

	2.4
	"Compensation" means those amounts otherwise payable in cash or by check or electronic deposit by the Corporation to an Eligible Person
as salary for 2004, which amounts are includable in his gross income for federal income tax purposes (without regard to Compensation deferred under this or any other plan maintained by the
Corporation), including but not limited to directors' fees, salary and bonus, but excluding any and all nonelective contributions (including matching contributions) made by the Corporation to any
employee benefit plan (within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended). Without limiting the generality of the foregoing, the
limitations imposed by Code Section 401(a)(17) do not apply to Compensation as defined under the Plan.

	2.5
	"Corporation" means Uranium Resources, Inc, a Delaware corporation, together with any successor thereto which adopts this Plan by
appropriate written action.

	2.6
	"Deferral Percent" means the portion (expressed as a percentage) of the Compensation that a Participant elects to defer pursuant to
Section 4.1 hereof.

	2.7
	"Deferred Amount" means the amount of Compensation that a Participant has elected to defer pursuant to Section 4.1 hereof.

	2.8
	"Designated Recipient" means any person who becomes entitled to receive any distribution hereunder by reason of the death of a
Participant.

	2.9
	"Distribution Date" means January 11, 2006.

	2.10
	"Earned Compensation" means at any date the amount of Compensation that the Corporation is obligated to pay Participant for services
rendered before giving effect to the Participant's deferral election.

	2.11
	"Eligible Person" means any employee or director of the Corporation or any of its wholly owned subsidiaries, but only so long as such
person meets all of the requirements of Section 3.1(a) of the Plan.

	2.12
	"ERISA" means The Employee Retirement Income Security Act of 1974, as amended and then in effect. 

 

	2.13
	"Participant" means any Eligible Person who defers Compensation under the Plan.

	2.14
	"Share Price" means $0.20 per share.

	2.15
	"General Provisions." The masculine wherever used herein shall include the feminine and singular and plural forms are interchangeable.
Certain terms of more limited application have been defined in the provisions to which they are principally applicable. The division of the Plan into Articles and Sections with captions has
been done for convenience only and is not to be taken as limiting or extending the meaning of any of its provisions. 

ARTICLE III

ELIGIBILITY AND PARTICIPATION  

        3.1    General Eligibility Conditions.    

	(a)
	To
become eligible to participate in this Plan, an individual must be (i) an executive employee or a director of the Corporation or any of its wholly owned subsidiaries and
(ii) designated as an Eligible Person on Exhibit A, as amended from time to time.

	(b)
	Once
an Eligible Person becomes a Participant, such individual shall continue to be eligible to defer Compensation under the terms of this Plan until such individual fails to meet at
least one of the conditions described above. If a Participant ceases to meet such conditions, his interest in the Plan and amounts deferred prior to the date he ceases to be an Eligible Person shall
continue to be held subject to the terms of the Plan. For the purposes of Deferred Amounts that are to be distributed thereafter and for such purpose only, such person shall continue to be a
Participant. 

        3.2    Election to Participate.    To actively participate in the Plan, an Eligible Person must execute a Deferred
Compensation Election in the form attached hereto as Exhibit C and shall file such election with the Committee. 

        3.3    Share Election.    To elect to receive shares of Common Stock, a Participant shall execute and deliver to the
Company the Share Election in the form attached hereto as Exhibit D on or before the Distribution Date. 

ARTICLE IV

DEFERRAL OF COMPENSATION  

        4.1    Deferral Elections.    As of the date hereof, the Participants have elected to defer that portion of their
Compensation (expressed as a percent) as set forth in Exhibit B hereto. Such elections are irrevocable unless the Corporation and the Participant
agree otherwise. 

        4.2    Period of Deferral.    All amounts that the Participants elect to defer shall be paid in cash on the
Distribution Date or, at the election of the Participant prior to that date, shares of Common Stock as set forth in Article V. Upon death or termination of employment, the Participant shall
have a vested interest in Earned Compensation. 

        4.4    Base Salary for Other Purposes.    Except as otherwise expressly prohibited by law or the terms of a benefit
plan, any Deferred Amount shall continue to be counted as part of the Participant's base salary for purposes of any other contracts between Participant and the Corporation, including, without
limitation, those certain compensation agreements dated June 2, 1997 between the Corporation and certain of the Participants. 

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ARTICLE V

SHARE ELECTION  

        5.1    Number of Shares to be Received.    If a Participant elects to receive payment of the Deferred Amount in shares
of Common Stock, the number of shares of Common Stock to be issued for the Deferred Amount shall equal the Deferred Amount divided by the Share Price. 

        5.2    Limitation on Sale of Shares.    All certificates representing any of the shares of Common Stock shall have
endorsed thereon the following legend: 

"THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED." 

        5.3    Withholding.    The Corporation will make appropriate withholding for all relevant federal, state and local tax
purposes from the non-deferred portion of Compensation for any Participant. On the Distribution Date if the fair market value of the Common Stock that a Participant will receive for any
Deferred Amount is in excess of the Share Price, the Corporation will be required to withhold additional amounts based upon such excess. The source of such additional amounts will be Compensation
otherwise payable to the Participant on the Distribution Date, to the extent sufficient. If such amounts are insufficient, the Participant will be required to pay to the Corporation the appropriate
amounts as a condition to receipt of the shares. 

ARTICLE VI

BENEFICIARIES  

        If Participant has not designated a Designated Recipient, any distribution hereunder after the death of a Participant shall be payable first to his surviving
spouse, if any, and if none, to his estate. 

ARTICLE VII

PLAN ADMINISTRATION  

        7.1    Administration.    The Plan shall be administered by a committee as provided in Section 7.2 hereof, as
an unfunded deferred compensation plan. 

        7.2    Plan Committee.    

	(a)
	The
Committee shall be the Corporation's Board of Directors. No member of the Committee shall act or participate in any action of the Committee directly affecting his own Account
under the Plan, unless such action is of general application to all Participants. The Committee is authorized to interpret the Plan and, from time to time, may adopt such rules and regulations,
consistent with the provisions of the Plan, as it may deem advisable to carry out the purposes of the Plan.

	(b)
	The
Committee shall have all powers necessary to accomplish the purpose of the Plan, including, but not limited to, (i) the discretionary authority to interpret the Plan;
(ii) the discretionary authority to determine all questions relating to the rights and status of Eligible Persons, Participants and Designated Recipients; and (iii) the discretionary
authority to make any and all rules and regulations needed or advisable for the administration of the Plan as are not inconsistent with the terms and provisions hereof. 

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	(c)
	Without
limiting the powers set forth herein, the Committee shall have the power to: (i) change or waive in writing any requirements of the Plan to conform with law or to meet
special circumstances not anticipated or covered in the Plan; (ii) determine the times and places for holding meetings of the Committee and the notice to be given of such meetings;
(iii) employ or otherwise retain such agents and assistants, counsel (who may be of counsel to the Corporation herein), and clerical and other service providers as the Committee may require in
carrying out the provisions of the Plan; and (iv) authorize one or more of their number, or any agent thereof, to execute or deliver any instrument on behalf of the Committee. 

        7.3    Statement of Participant's Account.    As soon as practicable following December 31 in each year, and
otherwise from time to time as the Committee in its sole discretion may direct, the Committee shall mail, via first class mail, to each Participant a written statement setting forth the Account of
such Participant as of the end of a year. Any statement provided in accordance with this Section shall be deemed to have been accepted as correct, unless written notice to the contrary is
received by the Committee within thirty (30) days after the mailing of such statement to the Participant. 

        7.4    Payment of Expenses.    All costs and expenses incurred in administering the Plan shall be paid by the
Corporation. 

ARTICLE VIII

AMENDMENT AND TERMINATION  

        8.1    Amendment.    The Corporation hereby reserves the right, at any time and from time to time, by written action
of its Board of Directors (or by written action of an officer or officers of the Corporation to whom such Board of Directors has expressly delegated the authority to amend the Plan), to amend, modify
or alter any or all of the provisions of the Plan without the consent of any
Eligible Person, Participant, Designated Recipient or other person; however, no amendment shall operate retroactively so as to affect adversely any rights to which a Participant may be entitled under
the provisions of the Plan as in effect prior to such action. Any such amendment, modification or alteration shall be expressed in an instrument executed by an authorized officer or officers of the
Corporation, and shall become effective as of the date designated in such instrument. 

        8.2    Termination.    The Corporation reserves the right to suspend, discontinue or terminate the Plan, at any time,
in whole or in part, by written action of its Board of Directors, effective as of the date designated in such written action, without the consent any Eligible Person, Participant, Designated Recipient
or other person. 

ARTICLE IX

MISCELLANEOUS PROVISIONS  

        9.1    Employment Remains At Will.    Nothing in the adoption, maintenance or operation of the Plan shall confer on
any employee, Eligible Person or Participant the right to continued employment by the Corporation or by any affiliate or subsidiary corporation thereof, or be treated or considered evidence of an
intent to provide continued employment to such individual, or affect in any way the right of the Corporation or such affiliate or subsidiary, to terminate such individual's employment, at any time and
for any reason. Any question as to whether and when there has been a termination of a Participant's employment, and the cause of such termination, shall be determined by the Committee; any such
determination by the Committee shall be final, binding and conclusive. 

        9.2    Facility of Payments.    Whenever, in the opinion of the Committee, a person entitled to receive any payment,
or installment thereof, is under a legal disability or is unable to manage his 

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financial
affairs, the Committee shall have the discretionary authority to direct payments to such person's legal representative, or to a relative or friend of such person for his benefit.
Alternatively, the Committee may in its discretion apply the payment for the benefit of such person in such manner as the Committee deems advisable. Any such payment or application of benefits, made
in good faith and in accordance with the provisions of this Section, shall completely discharge any liability of the Plan, the Corporation and the Committee with respect to such payment or application
of benefits. 

        9.3    Plan Is Unfunded; No Obligation to Fund.    All Accounts or interests in the Plan are unfunded and the
Corporation shall have no obligation to establish any special or separate fund, or segregate any of its assets in order to assure the payment of any amounts due or becoming due and payable under the
Plan; however, to provide for the discharge of its obligations under the Plan, the Corporation may in its sole discretion establish a fund in its name, or acquire property or contract rights in its
name; provided that no Participant or other person (other than the Corporation) shall acquire a legal or equitable interest in any such fund, property or contract. The right of a Participant or his
Designated Recipient to receive a distribution hereunder shall constitute an unsecured claim against the general assets of the Corporation, and no Participant or Designated Recipient or other person
shall have any right in or against any amounts credited under the Plan or any other specific assets of the Corporation. All amounts credited under the Plan to any Accounts maintained for or on behalf
of a Participant shall constitute general assets of the Corporation and may be disposed of by the Corporation at such time and for such purposes as it may deem appropriate. 

        9.4    Anti-Alienation.    No right, benefit or interest in the Plan shall be subject to anticipation,
alienation, sale, assignment, pledge, partition, lien, levy, encumbrance or charge; and any attempt to anticipate, alienate, sell, assign, pledge, partition, lien, levy, encumber or charge the same
shall be void. No such right, benefit or interest shall be liable for or subject to the debts, contracts, liabilities, or torts of the person entitled to such benefits, including claims for alimony,
marital assets or property, support, or separate maintenance by the spouse of the Participant. If a Participant should become insolvent or bankrupt, or attempt to anticipate, alienate, sell, assign,
pledge, encumber or charge any right to benefits under this Plan, such Participant's interest in the Plan, in the discretion of the Committee, shall be extinguished; in such event, the Committee in
its sole discretion may hold or apply the interest at issue, or any part thereof, for the benefit of such Participant, such Participant's spouse, or such Participant's Designated Recipient, in such
manner as the Committee in its sole discretion may deem proper. Notwithstanding the generality of the foregoing, the Corporation shall have the unrestricted right to set off against or recover out of
any payments or benefits becoming payable to or for the benefit of a Participant, at the time such payments or benefits otherwise become payable hereunder, any amounts owed or owing to the Corporation
by such Participant. 

        9.5    Indemnification.    Each Participant, by executing a Compensation Deferral Agreement and becoming a Participant
hereunder, acknowledges and agrees to indemnify and hold the Corporation harmless from and against any damages, losses and expenses (including without limitation litigation costs incurred by the
Corporation in connection with the administration of the Plan) arising from third-party claims disputes involving such Participant's Plan interest (including without limitation, tax liens and levies,
creditors' claims, garnishment and bankruptcy proceedings, and proceedings in domestic relations court). 

        9.6    Unclaimed Interests.    If the Committee shall at any time be unable to make distribution or payment of
benefits hereunder to a Participant or any Designated Recipient of a Participant by reason of the fact that such Participant's or Designated Recipient's whereabouts is unknown, the Committee shall so
certify, and thereafter the Committee shall attempt to locate such missing person. In the event that such missing person is not located with seven (7) years, then the Committee shall cause the
Corporation to pay over to the Secretary of State of the state whose law has jurisdiction over such matters any and all amounts then owed to such person, in accordance with the unclaimed funds law of 

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such
state, and the Corporation's obligations thereto shall thereupon be considered fully and completely discharged and satisfied. 

        9.7    References to Code, Statutes and Regulations.    Any and all references in this Plan to any provision of the
Code, ERISA, or any other statute, law, regulation, ruling or order shall be deemed to refer also to any successor statute, law, regulation, ruling or order. 

        9.8    Liability.    The Corporation, and its directors, officers and employees, shall be free from liability, joint
or several, for personal acts, omissions, and conduct, and for the acts, omissions and conduct of duly appointed agents, in the administration of this Plan. 

        9.9    Governing Law; Severability.    The Plan shall be construed according to the laws of the State of Texas, and
all provisions hereof shall be administered according to the laws of that State, except to the extent preempted by federal law (including, without limitation, ERISA). In the event that any one or more
of the provisions of the Plan shall for any reason be held to be invalid, illegal, or unenforceable, such invalidity, illegality or unenforceability shall not affect any other provision of the Plan;
rather, the Plan shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained herein, and there shall be deemed substituted such other provision as will most
nearly accomplish the intent of the parties to the extent permitted by applicable law. 

        9.10    Taxes.    The Corporation shall be entitled to withhold and remit any federal, state and local taxes from any
distribution made hereunder which the Corporation believes are necessary, appropriate or required by relevant law, regulation or ruling. 

        9.11    Tax Consequences of Participation.    While the Plan is designed to provide Eligible Persons the opportunity
to defer Compensation on a tax-deferred basis, the Corporation makes no representation, warranty or guarantee of any federal, state or local tax consequences of participation in the Plan
to any Participant or Designated Recipient (or personal representative or attorney-in-fact for such Participant or Designated Recipient). 

        IN
WITNESS WHEREOF, URANIUM RESOURCES, INC, by action of its Board of Directors, has duly adopted Uranium Resources, Inc. Deferred Compensation Plan for 2004, effective as of the
1st day of January, 2004. 

	 	 	URANIUM RESOURCES, INC
	

 	
 	

By	
 	

	 	 	 	 	Name:	Paul K. Willmott
	 	 	 	 	Title:	Chairman, President and Chief Executive Officer

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DEFERRED COMPENSATION PLAN FOR 2004TAX AGREEMENT
                                     BETWEEN
                               NL INDUSTRIES, INC.
                                       AND
                            COMPX INTERNATIONAL INC.

     This  Agreement is executed on October 5, 2004 but  effective as of October
1, 2004 by and among NL Industries,  Inc. ("NL"), a Delaware  corporation having
its principal executive offices at Three Lincoln Centre, 5430 LBJ Freeway, Suite
1700,  Dallas,  Texas  75240,  Contran  Corporation   ("Contran"),   a  Delaware
corporation having its principal executive offices at Three Lincoln Centre, 5430
LBJ  Freeway,  Suite  1700,  Dallas,  Texas 75240 and CompX  International  Inc.
("CompX"),  a Delaware  corporation  having its principal  executive  offices at
Three Lincoln Centre, 5430 LBJ Freeway, Suite 1700, Dallas, Texas 75240.

                                    Recitals

     A. NL and CompX are eligible to file consolidated returns of federal income
taxes and, subject to certain jurisdictional limitations, will be subject to, or
continue  to be subject to,  combined  state and local tax  reporting  effective
October 1, 2004.

     B. NL and CompX wish to provide  for the  allocation  of  liabilities,  and
procedures to be followed, with respect to federal income taxes of CompX and any
subsidiaries of CompX and with respect to certain  combined  foreign,  state and
local taxes on the terms of this Agreement.

                                    Agreement

     The parties hereto agree as follows:

     Section 1. Definitions. As used in this Agreement, the following terms have
the meanings set forth below:

          (a) Code:  The  Internal  Revenue Code of 1986,  as amended,  and with
     respect to any section thereof any successor  provisions under such Code or
     any successor Code.

          (b) Combined Foreign, State and Local Taxes: For a taxable period, the
     amount of all foreign,  state and local taxes,  together  with all interest
     and penalties with respect thereto,  for which liability is computed (1) on
     the basis of a combined,  unitary or  consolidated  return  (whether at the
     initiative of the tax authority or of the taxpayer) and (2) by reference to
     one or more members of the CompX Group, one or more members of the NL Group
     and one or more  members of the  Contran  Group not  included  in the CompX
     Group.

          (c) Contran  Corporation:  A Delaware  corporation  that is the common
     parent of a group of corporations  electing to file a consolidated  federal
     income tax return and certain combined state and local returns.

          (d)  Federal  Taxes:  All  federal  income  taxes,  together  with all
     interest and penalties with respect thereto.

<PAGE>

          (e) NL Group:  NL and those of its  direct and  indirect  subsidiaries
     which join in the filing of a  consolidated  federal income tax return with
     its  common  parent,  Contran  (the  "Contran  Group"),  as such  Group  is
     constituted  from time to time.  For  purposes  of this  Agreement  (to the
     extent related to Combined  Foreign,  State and Local Taxes),  the term "NL
     Group"  shall  include  all direct  and  indirect  subsidiaries  of NL with
     reference to which Combined Foreign, State and Local Taxes are determined.

          (f) CompX Group: CompX  International Inc. and each direct or indirect
     subsidiary of CompX which would be a member of an affiliated group,  within
     the meaning of section  1504(a) of the Code,  of which CompX was the common
     parent,  as such Group is  constituted  from time to time.  For purposes of
     this Agreement (to the extent related to Combined Foreign,  State and Local
     Taxes) , the term  "CompX  Group"  shall  include  all direct and  indirect
     subsidiaries of CompX with reference to which Combined,  Foreign, State and
     Local taxes are determined.

          (g) CompX Group Tax Liability: For a taxable period, the liability for
     Federal Taxes and Combined  Foreign,  State and Local taxes, as applicable,
     that the CompX Group would have had if it were not a member of the NL Group
     or the  Contran  Group  during such  taxable  period (or during any taxable
     period prior thereto), and instead filed a separate consolidated return for
     such taxable period (and during all prior taxable  periods  beginning after
     October 1, 2004); provided,  however, that for purposes of determining such
     liability for a taxable period all tax elections  shall be consistent  with
     the tax  elections  made by Contran  for such  period.  In making  such tax
     elections it is understood  the Contran Group will make those tax elections
     that  are  beneficial  to  the  Contran  Group  on  a  consolidated  basis.
     Nevertheless,  Contran  will  use its  best  efforts  in the  case of those
     elections which affect the computation of the CompX Group Tax Liability, to
     make elections in a reasonable manner so as to minimize the CompX Group Tax
     Liability.

     Section 2. Contran as Agent.  Contran shall be the sole agent for the CompX
Group in all matters relating to the CompX Group Tax Liability.  The CompX Group
shall not (a)  terminate  such  agency or (b)  without  the  consent of Contran,
participate,  or attempt to  participate,  in any  matters  related to the CompX
Group Tax Liability, including, but not limited to, preparation or filing of, or
resolution of disputes,  protests or audits with the Internal  Revenue  Service,
state or local taxing authorities  concerning,  the Contran Group's consolidated
returns of Federal Taxes, returns of Combined Foreign,  State and Local Taxes or
the CompX Group Tax  Liability  with  respect  thereto  for any  taxable  period
beginning  after  October 1, 2004.  The CompX  Group  shall  cooperate  fully in
providing  Contran with all information and documents  necessary or desirable to
enable  Contran  to  perform  its  obligations  under  this  Section,  including
completion  of  Internal  Revenue  Service  and  state or local  tax  audits  in
connection with such CompX Group Tax Liability and  determination  of the proper
liability for such CompX Group Tax Liability.

     Section 3. Liability for Taxes; Refunds.

          (a) NL, as the common parent of the CompX Group,  shall be responsible
     for, and shall pay to Contran or a taxing  authority,  as  applicable,  the
     consolidated  tax  liability for the NL Group and has the sole right to any
     refunds received from Contran or a taxing authority, as applicable, subject
     to the provisions of Sections 5 and 6 of this Agreement.

<PAGE>

          (b) Notwithstanding  any other provision of this Agreement,  CompX and
     each  subsidiary  of CompX  which is a member of the CompX  Group  shall be
     severally liable to NL for the CompX Group Tax Liability.

          (c) CompX shall  indemnify  NL and hold it and the NL Group other than
     the CompX  Group,  harmless  from and against any  deficiency  in the CompX
     Group Tax Liability that may be due to NL.

          (d) NL shall  indemnify CompX and hold it and the CompX Group harmless
     from and against any Federal  Taxes and Combined  Foreign,  State and Local
     Taxes  attributable  to the NL Group or any  other  member  of the  Contran
     Group,  other than the CompX Group, as such taxes are determined under this
     and other tax sharing agreements.

     Section 4. Tax Returns.  NL shall file on behalf of the CompX Group any and
all  federal,  foreign,  state and local tax returns  that are  required as they
pertain to the CompX Group Tax  Liability.  The CompX  Group,  at NL's  request,
shall join in any  applicable  consolidated  returns  of  Federal  Taxes and any
returns of  Combined  State and Local  Taxes (for  which  returns  have not been
theretofore  filed) and  execute  its consent to each such filing on any form as
may be prescribed for such consent if such consent is required.  The decision of
NL's Tax Director(or any other officer so designated by NL) with  responsibility
for tax matters shall,  subject to the provisions of this Agreement,  be binding
in any dispute  between NL and the CompX Group as to what tax position should be
taken with respect to any item or transaction of the CompX Group.  The preceding
sentence  is  limited  to the tax  positions  that  affect  the CompX  Group Tax
Liability  and the  combined NL Group and Contran  Group.  In  addition,  NL and
members of the NL Group,  including CompX and members of the CompX Group,  shall
provide each other with such cooperation,  assistance and information as each of
them may  request  of the other with  respect  to the filing of any tax  return,
amended  return,  claim for refund or other document with any taxing  authority.
CompX  shall be solely  responsible  for all taxes due for the CompX  Group with
respect to tax  returns  filed by CompX or a member of the CompX  Group that are
required to be filed on a separate company basis, independent of NL.

     Section 5. Payment of CompX Group Tax  Liability for Federal  Taxes.  On or
before each date, as determined  under section 6655 of the Code,  for payment of
an installment of estimated Federal Taxes, CompX shall pay to NL an amount equal
to the  installment  which the CompX Group would have been required to pay as an
estimated  payment of Federal Taxes to the Internal  Revenue  Service if it were
filing a  separate  consolidated  return  in  respect  of the  CompX  Group  Tax
Liability.  Any balance owed with respect to the CompX Group Tax  Liability  for
such  taxable  period shall be paid to NL on or before the 15th day of the third
month after the close of such taxable period. If it is not possible to determine
the amount of such  balance on or before  such day,  (a) a  reasonable  estimate
thereof  shall be paid on or before  such day,  (b) the  amount of such  balance
shall be finally determined on or before the earlier of; (i) the 15th day of the
ninth  month after the close of such  taxable  period and (ii) the date on which
the consolidated tax return  containing the CompX Group for such period is filed
with the Internal Revenue Service,  and (c) any difference between the amount so
determined  and  the  estimated  amount  paid  shall;  (i)  in  the  case  of an
underpayment,  be promptly paid to NL and (ii) in the case of an overpayment, be
promptly refunded or applied against the estimated CompX Group Tax Liability for
the immediately following tax period, at the option of NL. If the overpayment is
not applied to the immediately  following tax period,  such overpayment shall be
promptly  refunded to the CompX Group. As between the parties to this Agreement,
the CompX Group shall be solely  responsible  for the CompX Group Tax  Liability
and  shall  have no  responsibility  for  Federal  Taxes  of the NL Group or the
Contran  Group other than payment of the CompX Group Tax Liability in accordance
with the terms of this Agreement.

<PAGE>

     Section 6. Refunds for CompX Group Losses and Credits for Federal Taxes. If
the calculation  with respect to the CompX Group Tax Liability for Federal Taxes
results in a net operating  loss ("NOL") for the current tax period that, in the
absence of a Code Section  172(b)(3)  election made by Contran,  is carried back
under Code  Sections  172 and 1502 to a prior  taxable  period or periods of the
CompX Group with respect to which the CompX Group  previously  made  payments to
NL, then,  in that event,  NL shall pay (or credit) CompX an amount equal to the
tax refund to which the CompX Group would have been entitled had the CompX Group
filed a separate  consolidated  federal income tax return for such year (but not
in excess of the net aggregate  amount of the CompX Group Tax Liability  paid to
NL with respect to the preceding two taxable  periods).  If the calculation with
respect to the CompX Group Tax  Liability  results in an NOL for the current tax
period,  that subject to the Code Section 172(b)(3) election made by Contran, is
not carried back under Code Sections 172 and 1502 to a prior  taxable  period or
periods of the CompX Group with respect to which CompX made payments to NL or is
not carried  back  because the Contran  Group does not have a  consolidated  net
operating loss for the current tax period, then, in that event such NOL shall be
an NOL  carryover  to be used in  computing  the CompX Group Tax  Liability  for
future taxable  periods,  under the law applicable to NOL carryovers in general,
as such law applies to the relevant  taxable period.  Furthermore,  if the CompX
Group would have been entitled to a refund of Federal Taxes for any year had the
CompX Group filed a separate consolidated federal income tax return for the loss
year and the carryback  year, NL shall pay to CompX the amount which CompX would
have  received as a refund from the  Internal  Revenue  Service.  Payments  made
pursuant  to this  Section  6 shall be made on the  date  that  Contran  (or any
successor  common parent of a tax group to which the NL Group is a member) files
its  consolidated  federal  income tax return for the taxable  period  involved.
Principles  similar to those discussed in this Section 6 shall apply in the case
of the utilization of all CompX Group loss and credit carrybacks and carryovers.

     Section 7.  Payment of CompX Group Tax  Liability  for  Foreign,  State and
Local Taxes. The foregoing  principles contained in Sections 5 and 6 shall apply
in similar fashion to any consolidated or combined foreign, state or other local
income tax returns,  containing any member of the NL Group and any member of the
CompX Group that is not also a member of the NL Group, which may be filed.

     Section 8.  Subsequent  Adjustments.  If any  settlement  with the Internal
Revenue Service,  foreign,  state or local tax authority or court decision which
has become final  results in any  adjustment  to any item of income,  deduction,
loss or credit to the NL Group in respect of any taxable  period subject to this
Agreement,  which,  in any such  case,  affects  or relates to any member of the
CompX Group as  constituted  during  such  taxable  period,  the CompX Tax Group
Liability  shall be  redetermined to give effect to such adjustment as if it had
been made as part of or reflected in the original  computation  of the CompX Tax
Group  Liability  and proper  adjustment  of amounts paid or owing  hereunder in
respect  of such  liability  and  allocation  shall  be  promptly  made in light
thereof.

     Section 9. Amendments. This Agreement may be amended, modified,  superseded
or  cancelled,  and any of the terms,  covenants,  or  conditions  hereof may be
waived,  only by a written instrument  specifically  referring to this Agreement
and executed by both  parties  (or, in the case of a waiver,  by or on behalf of
the party waiving compliance).  The failure of either party at any time or times
to require  performance  of any provision of this  Agreement  shall in no manner
affect the right at a later time to enforce the same.  No waiver by either party
of any  condition,  or of any breach of any term or covenant,  contained in this
Agreement, in any one or more instances, shall be deemed to be or construed as a
further or continuing waiver of any such condition or breach, or a waiver of any
other condition or of any breach of any other term or covenant.

<PAGE>

     Section 10.  Retention of Records.  NL shall  retain all tax  returns,  tax
reports,  related  workpapers  and all schedules  (along with all documents that
pertain to any such tax returns, reports or workpapers) that relate to a taxable
period in which the CompX Group is included in a  consolidated  or combined  tax
return  with NL. NL shall  make such  documents  available  to CompX at  CompX's
request. NL shall not dispose of such documents without the permission of CompX.

     Section 11. Headings. The headings of this Agreement are for convenience of
reference only, and shall not in any way affect the meaning or interpretation of
this Agreement.

     Section 12.  Governing Law. This Agreement  shall be construed and enforced
in  accordance  with the laws of the  State of  Delaware  without  regard to its
conflicts of laws provisions.

     Section  13.  Counterparts.  This  Agreement  may be  executed  in multiple
counterparts,  each of  which  shall  be an  original,  but all of  which  shall
constitute but one agreement.

     Section 14.  Successors.  This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective  subsidiaries,  and their
respective successors and assigns.

     Section 15. Effective Date. This Agreement shall be effective as of October
1, 2004.

<PAGE>

     IN WITNESS  WHEREOF,  the parties  hereto have executed  this  Agreement on
October 5, 2004 but effective October 1, 2004.

                                        NL INDUSTRIES, INC.

                                        By:  /s/ Kelly D. Luttmer
                                             -------------------------
                                             Kelly D. Luttmer
                                             Tax Director
[Seal]

ATTEST:

/s/ A. Andrew R. Louis
-----------------------
Assistant Secretary,
NL Industries, Inc.

                                        CONTRAN CORPORATION

                                        By:  /s/ William J. Lindquist
                                             -------------------------
                                             William J. Lindquist
                                             Senior Vice President

[Seal]

ATTEST:

/s/ A. Andrew R. Louis
-----------------------
Secretary,
Contran Corporation

                                        COMPX INTERNATIONAL INC.

                                        By:  /s/ Darryl R. Halbert
                                             -------------------------
                                             Darryl R. Halbert
                                             Vice President, Chief Financial
                                             Officer and Controller

[Seal]

ATTEST:

/s/ A. Andrew R. Louis
-----------------------
Secretary,
CompX International Inc.

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