Document:

exhibit102.htm

EXHIBIT 10.2

  

  

  

[FIFTH THIRD BANK LETTERHEAD]

May 31, 2013

Champion Industries, Inc.

Attn: Mr. Todd Fry

2450 First Avenue

Huntington, West Virginia 25728

Re: Credit Facilities Extended to Champion Industries, Inc. (the “Borrower”)

Ladies and Gentlemen:

Reference is hereby made to that certain First Amended and Restated Credit Agreement dated as of October 19, 2012 (as amended and otherwise modified from time to time, including by the Forbearance Agreement (defined below) the “Credit Agreement”), by and among the Borrower, the Lenders party thereto, and Fifth Third Bank, an Ohio banking corporation, as the Administrative Agent and as the L/C Issuer, and the First Limited Forbearance and Waiver Agreement and First Amendment to Amended and Restated Credit Agreement (the “Forbearance Agreement”), by and among the Borrower, Mr. Marshall Reynolds, individually (the “Shareholder”), each of the undersigned Guarantors (the “Guarantors”), the Lenders party thereto, and Fifth Third Bank, as L/C Issuer and Administrative Agent. All capitalized terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement.

This letter is the Letter Agreement. By countersigning this Letter Agreement below, each Lender, the Borrower, each Guarantor and the Shareholder each agree as follows:

Section 1. Matters pertaining to certain sale transactions. The parties hereto hereby agree that:

(a) The Designated Transaction No. 2, as such term is defined in Section 1.1 of the Credit Agreement, shall mean the sale of all or substantially all of the assets or capital stock of Capitol Business Equipment, Inc. (dba Capitol Business Interiors) (“CBI”), a West Virginia corporation that is wholly owned by Stationers, Inc. ("Stationers"), a West Virginia corporation that is wholly owned by the Borrower. For purposes of Section 6.31(b)(ii) of the Credit Agreement, the minimum amount of the Net Cash Proceeds to Borrower with respect to Designated Transaction No. 2 shall be $5,000,000.

(b) The Borrower hereby represents and warrants to each Lender and the Administrative Agent that approval of Borrower’s shareholders is not required for Designated Transaction No. 1, whether considered separately or together with Designated Transaction No. 2; and, specifically, (i) following the consummation of Designated Transaction No. 1 and Designated Transaction No. 2, Borrower would be deemed to have retained a significant continuing business activity under the provisions of Section 31(D)-12-1202(a) of the West Virginia Code because Borrower will have retained business activity that represented at least 25% of total assets at the end of Borrower’s fiscal year 2012, and 25% of either income from continuing operations before taxes or revenues from continuing operations for such fiscal year, in each case of Borrower and its Subsidiaries on a consolidated basis, and (ii) Borrower’s governance documents (e.g., charter, articles of incorporation, by-laws, or other similar document) do not contain any provision that would require approval of Borrower’s shareholders for Designated Transaction No. 1, whether considered separately or together with Designated Transaction No. 2.

(c) For purposes of Section 10(e) of the Forbearance Agreement, the reference therein to “the board of directors of each of the Borrower and certain of its Subsidiaries” shall mean the board of directors of each of Borrower, Stationers and CBI.

Section 2. Matters Pertaining to Certain Expense Items. For purposes of Section 9(f) of the Forbearance Agreement, neither Borrower nor any Guarantor shall make any payment or other transfer of value on account of expense items of the kind designated in the Summary of Cost Reductions, dated April 30, 2013, issued to the Required Lenders, as Other Items and included in the week ended May 3, 2013, or similar discretionary items. 

  

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Section 3. Release; Covenant Not to Sue; Acknowledgement.

(a) The Borrower, each Guarantor and the Shareholder (collectively, the “Releasing Parties”) each hereby absolutely and unconditionally releases and forever discharges the Administrative Agent, the L/C Issuer and each Lender, and any and all participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents, attorneys, consultants, representatives and employees of any of the foregoing (each a “Released Party”), from any and all claims, demands or causes of action of any kind, nature or description relating to or arising out of or in connection with or as a result of any of the Obligations, the Credit Agreement, this Letter Agreement, any other Loan Documents, and the negotiation and execution of the Credit Agreement and this Letter Agreement, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which each Releasing Party has had, now has or has made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this Agreement, whether such claims, demands and causes of action are matured or unmatured or known or unknown. It is the intention of each Releasing Party in providing this release that the same shall be effective as a bar to each and every claim, demand and cause of action specified. Each Releasing Party acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action and agree that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts. Each Releasing Party understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

(b) Each Releasing Party, on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Released Party above that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Released Party on the basis of any claim released, remised and discharged by such Releasing Party pursuant to the above release. If any Releasing Party or any of its successors, assigns or other legal representations violates the foregoing covenant, such Releasing Party, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Released Party may sustain as a result of such violation, all reasonable attorneys’ fees and costs incurred by such Released Party as a result of such violation.

(c) Each Releasing Party represents and warrants that, to its knowledge, there are no liabilities, claims, suits, debts, liens, losses, causes of action, demands, rights, damages or costs, or expenses of any kind, character or nature whatsoever, known or unknown, fixed or contingent, which such Releasing Party may have or claim to have against any Released Party arising with respect to the Obligations, the Credit Agreement or any other Loan Documents, and the negotiation and execution of the Credit Agreement and this Letter Agreement, and each Releasing Party further acknowledges that, as of the date hereof, it does not have any counterclaim, set-off, or defense against the Released Parties, each of which such Releasing Party hereby expressly waives.

Section 4. Reaffirmation of Guarantors.

(a) Each Guarantor heretofore executed and delivered to the Administrative Agent a Guaranty Agreement dated as of September 14, 2007 (the “Guaranty”). Each of the Guarantors hereby acknowledges that it has reviewed the terms and provisions of the Credit Agreement and this Letter Agreement and consents to the terms and conditions of the Credit Agreement (and all Obligations thereunder), this Letter Agreement and any related Loan Documents and all obligations thereunder and hereunder, and to any modification of the Loan Documents effected pursuant to this Letter Agreement. Each Guarantor hereby confirms to the Lender Parties that, after giving effect to this Letter Agreement, the Guaranty of such Guarantor and each other Loan Document to which such Guarantor is a party continues in full force and effect and is the legal, valid and binding obligation of such Guarantor, enforceable against such Guarantor in accordance with its terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to enforceability. Each Guarantor further acknowledges, confirms and agrees that Administrative Agent and the Lenders have and shall continue to have a valid, enforceable and perfected first-priority lien (subject only to Permitted Liens) upon and security interest in the Collateral granted to Administrative Agent and the Lenders pursuant to the Loan Documents or otherwise granted to or held by Administrative Agent and the Lenders.

(b) Each Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in the Credit Agreement, such Guarantor is not required by the terms of the Credit Agreement or any other Loan Document to consent to the waivers or modifications to the Credit Agreement effected pursuant to this Letter Agreement, (ii) nothing in the Credit Agreement, this Letter Agreement or any other Loan Document shall be deemed to require the consent of such Guarantor to any future waivers or modifications to the Credit Agreement, and (iii) the Lender parties hereto are relying on the assurances provided herein in entering into this Letter Agreement and maintaining credit outstanding to the Borrower.

[Signature Pages Follow]

  

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Fifth Third Bank, as Administrative Agent,

	 	
as a Lender and as L/C Issuer.

	 	 
	 	
By: /s/ Donald K. Mitchell

	 	
Name: Donald K. Mitchell

	 	Title: Vice President

  

Signature page 1 of 9 to May 31, 2013 Letter Agreement

  

	 	
THE HUNTINGTON NATIONAL BANK, as a Lender

	 	 
	 	
By: /s/ Bruce G. Shearer

	 	
Name: Bruce G. Shearer

	 	Title: SVP

 

  

Signature page 2 of 9 to May 31, 2013 Letter Agreement

  

	 	
SUNTRUST BANK, as a Lender

	 	 
	 	
By: /s/ William S. Krueger

	 	
Name: William S. Krueger

	 	Title: First Vice President

 

  

Signature page 3 of 9 to May 31, 2013 Letter Agreement

  

	 	
Old National Bank NA, Successor in Interest to the FDIC as Receiver of Integra Bank National Association, as a Lender

	 	 
	 	
By: /s/ Jason L. Dunn

	 	
Name: Jason L. Dunn

	 	Title: Assistant Vice President

 

  

Signature page 4 of 9 to May 31, 2013 Letter Agreement

  

	 	
UNITED BANK, as a Lender

	 	 
	 	
By: /s/ Andrew Dawson

	 	
Name: Andrew Dawson

	 	Title: AVP

 

  

Signature page 5 of 9 to May 31, 2013 Letter Agreement

  

	 	
SUMMIT COMMUNITY BANK, a West Virginia Banking Corporation, as a Lender

	 	 
	 	
By: /s/ Brad Ritchie

	 	
Name: Brad Ritchie

	 	Title: President

 

  

Signature page 6 of 9 to May 31, 2013 Letter Agreement

  

	 	
Accepted and Agreed, by Borrower

	 	 
	 	
Champion Industries, Inc.

	 	 
	 	 
	 	
By: /s/ Timothy D. Boates

	 	
Name: Timothy D. Boates

	 	
Title: CRO

  

Signature page 7 of 9 to May 31, 2013 Letter Agreement

  

	 	
Accepted and Agreed, by Each Guarantor

	 	 
	 	
The Chapman Printing Company, Inc., a West Virginia corporation

	 	
Stationers, Inc., a West Virginia corporation

	 	
Bourque Printing, Inc., a Louisiana corporation

	 	Dallas Printing of MS, Inc., a Mississippi corporation
	 	
Carolina Cut Sheets, Inc., a West Virginia corporation

	 	
Donihe Graphics, Inc., a Tennessee corporation

	 	
Smith & Butterfield Co., Inc., an Indiana corporation

	 	
The Merten Company, an Ohio corporation

	 	
Interform Corporation, a Pennsylvania corporation

	 	
CHMP Leasing, Inc., a West Virginia corporation

	 	
Blue Ridge Printing Co., Inc., North Carolina corporation

	 	
Capitol Business Equipment, Inc., a West Virginia corporation

	 	
Thompson’s of Morgantown, Inc., a West Virginia corporation

	 	
Independent Printing Service, Inc., an Indiana corporation

	 	
Diez Business Machines, Inc., a Louisiana corporation

	 	
Transdata Systems, Inc., a Louisiana corporation

	 	
Syscan Corporation, a West Virginia corporation

	 	
Champion Publishing, Inc., a West Virginia corporation

	 	 
	 	 
	 	 
	 	 
	 	
By: /s/ Todd R. Fry

	 	
Name: Todd R. Fry

	 	
Title: Vice President

	 	 

  

Signature page 8 of 9 to May 31, 2013 Letter Agreement

  

	 	
Accepted and Agreed, by Marshall T. Reynolds, Individually and as Shareholder

	 	 
	 	
Mr. Marshall Reynolds

	 	 
	 	 
	 	 
	 	
By: /s/ Marshall T. Reynolds

	 	
Name: M-T-Reynolds

Signature page 9 of 9 to May 31, 2013 Letter AgreementPeninsula Energy Limited: Exhibit 4.1 - Filed by newsfilecorp.com

Confidential treatment has been requested for portions of this
exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as [***]. A complete version
of this exhibit has been filed separately with the Securities and Exchange
Commission. 

RESIN PROCESSING AGREEMENT 
FOR 
URANIUM
CONCENTRATES 
(“AGREEMENT”) 

	EFFECTIVE DATE: 	
      June 11, 2015 

	  	
      

	PARTIES: 	
      Uranium One Americas, Inc., a Nevada corporation
      

	  	
      901 North Poplar, Suite 260 

		
       Casper, Wyoming 82601  

	  	
      (“U1”) 

	  	
      

	  	
      Strata Energy Inc., a Delaware corporation
  

	  	
      1900 West Warlow Drive, Building A 

	  	
      P.  Gillette, Wyoming 82717 O. Box 2318
  

	  	
      (“Strata”) 

RECITALS: 

Strata owns and operates uranium
mines in Wyoming from which it produces uranium captured on ion exchange,
uranium specific, compatible resins. Strata desires to engage U1 to strip,
elute, precipitate, wash, dry and drum such uranium from the resins to produce
dried uranium concentrate and perform additional related services as described
herein. 

U1 owns the Irigaray Central
Processing Plant (“ICPP”) in Johnson County, Wyoming and has agreed to provide
such services to Strata using the ICPP. 

In consideration of the mutual
covenants set forth herein and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties agree as
follows: 

AGREEMENT: 

1.      SCOPE
OF SERVICES. 

1.1      Processing
of Uranium Resins.

During
the Term (as defined below) of this Agreement and in accordance with all of the
terms and conditions of this Agreement, Strata shall deliver uranium loaded
resins (“Resins” or “Strata Resins”) produced from mining properties owned and
operated by Strata as of the Effective Date of this Agreement and throughout the
Term of this Agreement (individually, an "Owned Property" and collectively, the
“Owned Properties”), to U1 at ICPP for stripping, eluting, precipitating
(collectively, “Processing,” “Processed” or “Process”) and drying of the
yellowcake precipitate from the Resins into uranium concentrate (“Concentrate”).
Prior to, or at the time of, shipping Resins from Owned Properties,
Strata shall certify in writing to U1 the particular Owned Property from which
such Resins were sourced. U1 will Process Resins in accordance with U1’s then
current standard operating procedures used at ICPP for processing of resins
owned by U1 or other third parties (“SOP”). Strata, at is sole cost and expense,
will arrange for the transportation and delivery of the Resins to ICPP and all
such costs and expenses related thereto shall be invoiced directly to Strata for
Strata’s account. 

1.2      Delivery
of Resins.

(a)      During
the Term of this Agreement, Strata shall deliver Resins to U1 in batches of 400
to 500 cubic foot truckloads to provide a sufficient quantity to complete a
Process cycle. No tanker truckload of Resins (“Truckload”) volume shall exceed
500 cubic feet of material. Strata shall notify U1 at least 15 business days in
advance of the arrival of the first Truckload of Resins, then at least 2
calendar days in advance of each subsequent Truckload of Resins. Strata shall
specify the quantity of resin to be delivered prior to each delivery. Deliveries
shall be made during U1’s normal business hours at ICPP.

(b)      Resins
shall be transported to ICPP in bulk tanker trucks of a type suitable for such
use, approved by U1 in advance of any delivery. U1 will provide acceptable
specifications for tanker trucks to Strata. The design of such trucks and the
transportation of the Resins must conform to, and be carried out in compliance
with, all applicable federal, state and local governmental laws, regulations and
requirements, including without limitation those of the U.S. Department of
Transportation and U.S. Nuclear Regulatory Commission (“NRC”). Each Truckload
shall be identified by a number assigned by Strata. All Resins shall be
delivered F.O.B. inside the gates at the ICPP.

(c)     
In the event the external surface of any tanker truck carrying a
Truckload to ICPP is determined by U1 to exhibit levels in excess of the limits
for radioactive contaminants as prescribed in 49 CFR 173.443 (or any other
applicable federal or state laws, rules or regulations) upon its arrival, U1
will promptly notify Strata by telephone of such radioactive contamination. If
the contamination involves unusual or imbedded corrosion or other surface and/or
subsurface contamination such that a tanker truck cannot be released after U1’s
normal wash down under SOP, U1 will notify Strata of such contamination. If it
is reasonably necessary to remove the contaminated tanker truck from the ICPP to
accommodate other resin deliveries, transfers or related activities, or for
other reasons, U1 will decontaminate as reasonably necessary to allow release of
such tanker truck. The fee for such decontamination services shall be $[***], in
no event to exceed $[***] per tanker truck without prior authorization (which
may be oral or written) from Strata. Both parties shall negotiate in good faith
to address decontamination costs in excess of $[***] per tanker truck.
Notwithstanding the foregoing, however, U1 shall not be required to release any
tanker truck which it believes to be contaminated, and if for operational
reasons U1 needs to release a tanker truck whose decontamination costs will
exceed $[***], U1 may perform the required decontamination and release that
truck and charge Strata for the full amount of the decontamination. 

(d)      Subject
to the provisions of Section 1.2(c), U1 shall unload each Truckload delivered to
the ICPP and reload the tanker truck with stripped Resin on the same day as the
Truckload is delivered if reasonably possible. U1 will provide adequate storage
facilities for the Resins, and will store the Resins separate from any
other resins owned by U1 or any third party.

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1.3      Unloading
of Resins, Processing, Determination of Uranium Content and
Inventory.

(a)      Truckloads
will be received and Resins off-loaded from the tanker trucks as per the SOP. If
Strata desires to have preliminary sampling performed on the Resins in a
particular Truckload, Strata shall notify U1 in advance of the delivery of that
Truckload, and U1 will then perform preliminary sampling to determine the
estimated U3O8 content on the Resins. The cost of such sampling shall be charged
to Strata at U1's standard rates, which shall not exceed the standard rates
charged by commercial laboratories in the area. Within 3 business days of
delivery of each Truckload to ICPP, U1 shall elute the U3O8 from the Resins and
sample the resulting U3O8 bearing elution production solution from each
Truckload for U3O8 concentration and possible contaminants. The eluted Resins
(stripped resins) will be returned to a Strata tanker truck for return to
Strata’s facilities, at Strata’s sole expense. Subject to Strata’s rights under
Section 1.7, U1 shall have complete control of the Processing and sampling
operations. Representatives of Strata may be present during, and observe, all or
any part of the uranium recovery process including sampling, analysis
operations, Processing and drying. Strata shall give U1 3 days’ notice of its
desire to review and/or observe any part of such recovery process. All uranium
sample determinations shall be reported to an accuracy of three significant
figures. 

(b)      Within
7 days after the above-described elution and sampling have occurred, U1 will
notify Strata of the results of the assay of pounds of U3O8 content of the
elution production solution from each Truckload, expressed to three significant
figures. This determination of elution production U3O8 content (the “Estimated
Weight Concentrate”) shall be used for purposes of Sections 1.3(d), 3.2, 4.1,
4.2, 4.3 and 4.4. U1 must report chemical determinations of possible
contaminants to Strata within 14 days of elution and sampling, or within the
typical cycle time for commercial labs, whichever is greater. 

(c)     
The elution production from the Strata Resins measured and expressed as the
Estimated Weight Concentrate will be accumulated each calendar month, based on
the Estimated Weight Concentrate of the elutions that have been completed to the
pregnant eluate stage during the calendar month. The result of the elution
production will be translated into equivalent pounds of U3O8, derived from an
elution report similar to the form provided in Exhibit A, attached.
During the Term, U1 will determine and maintain a record of the total routine
production process losses of U3O8 content from the Estimated Weight Concentrate
of the pregnant eluted stage through Processing and drying to Concentrate for
all U3O8 Processed at the ICPP. The routine production process losses will be
allocated between Strata Concentrate production and all other uranium
concentrate production at the ICPP in a proportion (the “Production Losses
Proportion”) stated as a percentage equal to (i) the Estimated Weight
Concentrate of all Strata eluted Resins, divided by (ii) the total Estimated
Weight Concentrate of all uranium eluted resins produced from all sources
(including the Strata Resins) at the ICPP for the same period. 

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(d)     
During the Term, U1 will maintain a record of the inventory of the Estimated
Weight Concentrate of eluted Strata Resins and a corresponding inventory of
Strata Concentrate (calculated in the manner described below). At the end of
each calendar month, U1 will compile an inventory report, stating the Estimated
Weight Concentrate of pounds from each of the elutions of Strata Resins for the
month. Pounds eluted in the current month will be added to any existing Strata
inventory of Estimated Weight Concentrate for prior months. Initially, U1 shall
apply an estimated production losses factor to the inventory of Strata Estimated
Weight Concentrate to arrive at an inventory of pounds of Strata Concentrate.
Periodically, but no less often than annually, U1 shall calculate the actual
Production Losses Proportion to be applied to the inventory of Strata Estimated
Weight Concentrate and adjust the corresponding inventory of Strata Concentrate
accordingly. The pounds of Strata Concentrate shipped from U1 in accordance with
Section 1.5 and the pounds of Strata Concentrate transferred to U1 to satisfy
the compensation fee for U1 in accordance with Section 4.1(b) will be deducted
from the inventory of Strata Concentrate (unless Strata has pursuant to Section
4.1(a) elected a per-pound processing fee). 

1.4      Chloride
Content. If the chloride content of any Concentrate might exceed
the Converters' (as defined in Section 1.5) specifications, then U1 shall first
wash the Concentrate in a filter press in accordance with the SOP. 

1.5      Packaging
and Transportation to Converter.

(a)      Following
Processing and completion of drying of the Concentrate, U1 shall package the dry
yellowcake Concentrate in numbered steel drums approved for the storage and
transportation of Concentrate. U1 will provide drums for Strata product, unless
Strata specifies a certain drum type different than what ICPP uses (in which
case, Strata shall pay for of the costs of such different drums).

(i)      Strata shall have the
ability to ship a sample quantity of Strata material to one or more nominated
Converters to enable a Converter to test Strata material prior to the
commencement of regular deliveries to a Converter; 

(ii)     
Except as provided for in Section 1.5(a)(i), shipments of Strata material from
ICPP will be in the form of dry yellowcake in complete Lots. [***]. Once a Lot
is ready for shipment, U1 shall notify Strata, pursuant to a Drum Report in a
form similar to Exhibit B attached hereto, of the total weight of
Concentrate of the Lot and that the Lot is ready for shipment.

(b)     
Once U1 has notified Strata that a Lot is ready for shipment, Strata
shall provide U1 a schedule for delivery of the Lot(s) at ICPP to the Converter
and shall notify U1 of the transportation carrier designated for transport of
Concentrate Lot(s) to the NRC-licensed conversion plant designated by Strata
(individually, a “Converter” and collectively, the "Converters"). Strata, at its
sole cost and expense, will arrange with the designated carrier for shipment of
the Lot(s) to the Converter and all transportation and delivery costs shall be
invoiced directly to Strata for Strata’s account. Strata shall be responsible
for risk of loss and insurance on the Concentrate once U1 has delivered the
Lot(s) to the designated carrier at the ICPP. U1 shall provide storage for
Strata’s Concentrate, but U1 shall not be required to store more than [***]. of Strata’s Concentrate at ICPP at any one time, and U1
shall not be required to store any Concentrate for more than [***]. If storage
longer than this period is required by Strata, a cost for such extended storage
must be negotiated in writing between U1 and Strata. 

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1.6      Resins
and Concentrate Contaminants. All Resins shall be reasonably free
of contaminants such as sand, soils, particulates, vanadium, arsenic or organics
that would either compromise U1’s ability to recover U3O8 from the Resins in
accordance with the SOP, or that would result in rejection of Concentrate
produced under this Agreement by the Converter. Strata shall be responsible for
any and all charges, penalties and costs imposed by the Converter as the result
of the presence of any such contaminants in the Strata Resins. U1 shall be
responsible for any penalties or surcharges levied by the Converter on
Concentrate as a result of deviations from moisture and/or chloride content that
are not within industry standards.EXCEPT AS SPECIFICALLY SET FORTH IN THE
PRECEDING SENTENCE, U1 EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO URANIUM CONCENTRATE PRODUCED
FROM THE RESINS. 

1.7      Inspections
and Audits. Strata shall have the right to inspect and audit (i)
the facilities and procedures to be used by U1 at ICPP to dry, weigh, package
and inventory the Concentrate and (ii) the U1 books and records of each assay or
test of Strata's Resins, elution production solutions, Estimated Weight
Concentrate and Processed Concentrate. The inspections/audits may be conducted
prior to and at any time Resins are in possession of U1, including when being
sampled, Processed, dried, weighed, packaged or stored. Strata shall have the
right to take samples, split samples with U1, and/or review books and records
related to any of the U1 procedures and inventory maintenance for Resins,
including, sampling, processing, drying, weighing, inventorying, packaging,
storing or shipping the Concentrate. Each such inspection/audit will be
conducted only after 3 business days’ advance notice to U1, during U1’s normal
business hours with a representative of U1 present, and shall be conducted in a
manner that will not disrupt U1’s operations. All such inspections/audits shall
be conducted at the sole risk of Strata, in accordance with U1’s standard safety
procedures for third parties visiting ICPP and U1 shall not have any
responsibility or liability for death or injury to persons engaged in any such
inspection/audit or damage to their property unless that death, injury or damage
occurs as a result of U1’s gross negligence or willful misconduct.

1.8      Processing
of Resins from Other Sources. U1 shall have the right to process
through the ICPP resins, slurry and other materials, either from its own mines
or from third parties.

1.9      Third
Party Claims. In the event any party other than Strata shall make a
claim or demand, which U1 reasonably believes is being made in good faith, with
respect to ownership of the Resins or the Concentrates produced there from, or
the proceeds thereof, U1 shall notify Strata, and thereafter U1 shall have the
right to delay further Processing or drying of any Strata uranium and retain at
ICPP any Lots not yet delivered to a carrier for shipment to the Converter,
until Strata shall have furnished to U1 a final decree of a court of competent
jurisdiction, or other evidence reasonably satisfactory to U1, establishing
Strata’s title to the Resins and the Concentrates produced there from, and
rights to the proceeds thereof. Until Strata provides that decree or other
satisfactory evidence, U1 shall in its sole discretion have the right to suspend any further acceptance of Resins, and any further
Processing or drying of Strata uranium. Any storage provided by U1 pursuant to
this Section 1.9 which exceed the storage period which U1 is otherwise required
to bear under Section 1.5(b) this Agreement shall be paid for by Strata.

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2.      TERM.
This Agreement shall commence on the Effective Date set forth above and
continue until December 31, 2019 (the “Term”). This Agreement shall
automatically terminate at the end of the Term (irrespective of any event of
force majeure claimed by either Party), or earlier as provided in Sections 10,
11 or 14. This agreement may be extended past the end of the term upon mutual
written agreement between U1 and Strata. 

3.      QUALITY
AND QUANTITY SPECIFICATIONS. 

3.1      Quality.
Any Resins delivered by Strata to the ICPP shall be treated with the
same procedures and reagent chemistry as those that are applied to U1 owned (or
third party owned) resins, and must be anionic resins compatible with the
elution chemistry at the ICPP. Only those resins listed on Exhibit C to
this Agreement shall be acceptable for delivery as Resins under this Agreement.
U1 shall be under no obligation to modify the elution chemistry at the ICPP to
accommodate any Resins not listed on Exhibit C. If Strata delivers any
Resins not listed on Exhibit C, U1 may reject such unacceptable Resins,
or may elect to Process the unacceptable Resins and assess a surcharge on such
Resins based upon the incremental operating cost and capital cost increases
associated with the changes required to elute those Resins. Resins shall be of
uniform density and contain no clumped material, significant sand or soils, or
foreign, solid objects that would hinder discharge of the material from the
tanker truck. If the Strata Resins contain sufficient debris that would
interfere with the ICPP process, the installation of a resin shaker deck could
be considered by U1 and Strata, installation of which would be at the sole
expense of Strata. 

3.2      Quantity.

(a)     
On or before September 1st of each calendar year during the
Term of this Agreement, Strata shall provide to U1 a delivery schedule
specifying the annual amount of Estimated Weight Concentrate pounds to be
delivered for the following calendar year (and the amount for 2015 shall be
included in the delivery schedule delivered in September 1st of
2015). This schedule shall form Exhibit D of this Agreement. Except for 2015,
Strata shall commit to deliver at least 300,000 pounds of Estimated Weight
Concentrate pounds each calendar year during the Term and the delivery schedule
shall specify an annual total of at least 300,000 pounds per each calendar year
of the Term. The first Exhibit D provided by Strata shall include both 2015 and
2016 deliveries. The Exhibit D schedule shall provide for minimum and maximum
deliveries of Resins during each calendar month of that calendar year, and for
an annual total. Strata’s schedule of monthly deliveries in each calendar year
shall be prorated on a proportionate basis so that within a variance of
plus-or-minus 10%, 1/12 of the estimated annual delivery of Resins are delivered
during each month and therefore 1/4 of the estimated annual delivery of Resins
are delivered during each calendar quarter. Notwithstanding the foregoing, the
parties may agree to modified monthly delivery schedules to account for the
startup and wind down of production from well fields at Owned Properties. U1
will process Strata material in excess of the annual delivery schedule on a
space-available basis subject to U1 plant capacity limitations, and reserves the right to reject any amount over
[***]. U1 and Strata shall work together in good faith to schedule deliveries of
individual Truckloads of Resins to the ICPP in a manner that allows U1 to meet
its obligations under Section 1.2(d) . 

6

4.      FEES;
BILLING AND PAYMENT. 

4.1       Processing and Other Fees.

(a)      As
payment for its Processing of Resins and drying and storing of the recovered
Concentrate and other services provided by U1 under this Agreement, Strata will
pay U1 a fee of [***] of Estimated Weight Concentrate produced from the Resins,
adjusted by the Production Losses Proportion. The fee charged is based on the
following schedule.

	Estimate Weight Concentrate (Pounds) 	Payment Rate Per Pound 
	[***] 	[***] 
	[***] 	[***] 
	[***] 	[***] 
	[***] 	[***] 

(b)     
At the sole option of Strata, and in lieu of a cash payment U1 shall
retain for its own account and deduct from Strata's inventory, a quantity of
U3O8 equivalent in value to the amount determined in Section 4.1(a) . The
quantity to retain shall be determined by dividing the amount in Section 4.1(a)
by the average of the spot market price for U3O8 published by each of UxC and
TradeTech on the last business day of each month for the three months preceeding
the month that Strata Resins are Processed. If this option is chosen, Strata
hereby conveys and transfers to U1 good and marketable title to the U3O8
retained by U1 hereunder, free and clear of any liens, encumbrances or other
adverse claims.

(c)      The
fees set forth above shall (i) include the cost of receiving and Processing the
Strata Resins, including weighing, sampling and analyzing the eluted uranium
bearing solutions, recovered Concentrate and U3O8, all handling, washing (where
applicable) and drying of the Concentrate, packaging the Concentrate following
the drying process, and maintaining the Estimated Weight Concentrate inventory
and the Strata Concentrate inventory and related record keeping and (ii) exclude
all (A) insurance/risk of loss, transportation and delivery costs to or from
ICPP, (B) decontamination charges incurred under Section 1.2, (C) sampling
charges incurred under Section 1.3(a), (D) the cost of different drums as set
forth in Section 1.5(a), and (E) all other charges incurred by Strata under
other provisions of this Agreement. 

(d)      Beginning
with the calendar year 2016 and for each calendar year thereafter, both the
charge for decontamination services under Section 1.2 and the per pound
compensation payment to U1 under Section 4.2(a) shall be increased based on the
annual percentage increase (if any) in the Gross Domestic Product-Implicit Price
Deflator (“GDP-IPD”) over the previous calendar year (computed by dividing the latest published
GPD-IPD figure for the 4th quarter of the previous calendar year by the latest
published GPD-IPD figure for the 4th quarter of the calendar year immediately
preceding such previous calendar year). The GDP-IPD shall be as published by the
Bureau of Economic Analysis of the United States Department of Commerce. In the
event the GDP-IPD or a successor or substitute index is not available, a
reliable governmental index acceptable to U1 and Strata shall be used in lieu of
such index.

7

4.2      Choice
of Compensation. Strata shall elect to compensate U1 by one of the
two alternate forms of compensation provided under Section 4.1(b) by providing
written notice of such election to U1 not later than 15 days after the first
shipment of Resins is delivered to ICPP. Thereafter, Strata may elect to change
the form of compensation it receives to the other alternate form provided under
Section 4.1, not more frequently than quarterly, by providing written notice of
election to U1 at least 15 days prior to the beginning of the calendar quarter
to which Strata desires that the change apply. Each such choice shall remain in
effect until Strata timely provides a subsequent written notice of an election
to change form of compensation. 

4.3      Billing
and Payment.

(a)      For
periods during which U1’s compensation is a retention of a percentage of Strata
inventory, U1 shall receive credit for the applicable percentage of the
Estimated Weight Concentrates, determined as set forth in Section 4.1(b) . U1
shall submit a statement to Strata each month showing the number of pounds of
Estimated Weight Concentrate contained in the Resins delivered during the
previous month and any deductions for U1's compensation. This statement shall
also include an invoice for (i) any decontamination charges incurred under
Section 1.2, (ii) any sampling charges incurred under Section 1.3(a), (iii) any
drum charges or storage charges incurred under Section 1.5, and (iv) all other
charges incurred by Strata under other provisions of this Agreement. 

(b)      For
periods during which U1’s compensation is the per pound payment, U1 shall submit
an invoice to Strata each month for all Lots processed during the preceding
month and the fees due on account thereof, as well as for (i) any
decontamination charges incurred under Section 1.2, (ii) any sampling charges
incurred under Section 1.3(a), (iii) any drum charges or storage charges
incurred under Section 1.5, and (iv) all other charges incurred by Strata under
other provisions of this Agreement. The processing fee invoiced each month will
be based on the schedule of rates provided in Section 4.1(a) and the annual
total amount of pounds of Estimated Weight Concentrate identified by Strata in
Exhibit D. At the end of the year, U1 will provide Strata an invoice or
statement of credit, as the case may be, that will contain a true-up to the fees
required for the actual number of pounds of Estimated Weight Concentrate of
Resins delivered, in accordance with Section 4.1(a), provided that the actual
number of pounds of Estimated Weight Concentrate of Resins delivered is equal to
or greater than 300,000. However, if the actual number of pounds delivered is
less than 300,000 for the year, U1 shall in addition to the true-up amount for
the actual number of pounds delivered, also charge Strata [***] per each pound
by which the actual number of pounds delivered is less than 300,000 and shall
provide Strata an invoice for such charge. For example, with the minimum amount
being [***], if only [***] are delivered [***], Strata shall be charged [***]
for the [***] (after totaling the original monthly invoiced amounts plus the
true-up) and [***], or [***]. U1 shall apply any credit contained in a statement
of credit to the next invoice to be submitted to Strata after receipt of the statement of credit, or, if there are no further invoices, paid
in cash to Strata upon termination of the Agreement. 

8

(c)      Strata
shall pay the balance due on each invoice it receives from U1 under this Section
4.3 in full within 30 days after the receipt thereof. Payments shall be made at
the address designated on U1’s invoice. Past due accounts shall be subject to
interest at a rate of one percent (1%) of the past due amount per month for each
month (or part thereof) that any amount is past due, compounded monthly. If,
during the Term of this Agreement, governmental entities impose new or
additional taxes, tariffs, fees, surcharges, or other direct charges on the
services rendered under this Agreement (other than taxes on the income of U1),
U1 will have the right to increase the fees specified herein via a straight-cost
pass through upon giving 10 days’ prior written notice to Strata.

(d)      If
this Agreement is terminated prior to the expiration of its Term for reasons
other than a default by U1 or termination under Sections 10, 11 and 14, or if
Strata fails to deliver a delivery notice in respect of any year during the Term
as required under Section 3.2(a), then Strata shall pay U1 a termination fee
equal to [***]. 

The
parties agree that such early termination fee shall constitute liquidated
damages to compensate U1 for the consequences of such early termination and not
a penalty. For greater certainty, no termination fees apply in the event of
termination prior to the expiration of the Term for a default by U1 or a
termination under Sections 10, 11 and 14. 

4.4     
Uranium Content of Resins.

(a)     
Strata shall pay a surcharge on any Resins that are loaded with less
than

five pounds of U3O8 per cubic foot of Resin, to accommodate
higher elution costs. The surcharges shall be assessed based on the Estimated
Weight Concentrate calculation for each shipment of Resins and recovered in
accordance with the following schedule:

	 	  	 	Surcharge 
	 	  	 	(per lb. of 
	 	  	 	U3O8 contained in Resins 
	 	Average Load of U3O8 (lbs)/cu ft of 	 	based on Estimated Weight 
	 	Resin 	 	Concentrate calculations) 
	 	Greater than or equal to 4 but less than 5 pounds 		[***] 
	 	Greater than or equal to 3 but less than 4 pounds 		[***] 
	 	Greater than or equal to 2 but less than 3 pounds 		[***] 
	 	Less than 2 pounds 	 	[***] 

(b)      The
surcharges assessed pursuant to Section 4.4(a) shall be assessed on individual
Resin Truckloads. All such surcharges shall be paid by Strata within 30 days
after receipt of an invoice for the same. If Strata does not timely
pay any such invoice, that amount shall be subject to interest at a rate of one
percent (1%) of the past due amount per month for each month (or part thereof)
that any amount is past due, compounded monthly.

9

5.      COMMINGLING;
TITLE.

(a)      During
each dryer cycle, U1 shall use reasonable efforts to remove uranium, slurry or
concentrate from its tanks, pipes and drying and processing equipment. The
parties acknowledge and agree, however, that removal of all concentrates is not
possible and that following the elution of Resins some commingling of Strata’s
U3O8 liquid bearing solution and Concentrate with U3O8 liquid bearing solution
and concentrate not owned by Strata will occur. Due to this unavoidable
commingling, the parties have agreed to base the quantity of Concentrate
produced from the Resins on the Estimated Weight Concentrate calculation
described in Section 1.3(b) . U1 shall at all times maintain accurate and
current records of all Resin transfers delivered by Strata to ICPP for
processing hereunder. If U1 is able to avoid all commingling of liquids and
concentrates by the addition of equipment or storage capacity, payment on a
dried pounds basis could be considered in the future. 

(b)     
Title to all Resins and Concentrate processed under this Agreement
shall remain in Strata and shall in no event pass to U1, other than Concentrates
retained by U1 as compensation pursuant to Section 4.1(b) . 

6.      RISK
OF LOSS Strata shall bear risk of loss for all Resins until such
time as the Resins are delivered to ICPP and unloaded from the delivery tanker
truck for Processing and drying under this Agreement. Additionally, Strata shall
bear risk of loss for (a) any Resins returned to Strata under the terms of this
Agreement from the time the Resins are placed by U1 with a carrier for transport
from ICPP to Strata and leaves ICPP facilities and (b) any Concentrate
(following processing and packaging) from the time the Concentrate is deposited
by U1 with a Strata contracted carrier at ICPP for transport off site, whether
to a Converter for further processing or to any other destination. U1 shall bear
risk of loss for any Resins or Concentrate of Strata only during such time as
such Resins or Concentrate are located at ICPP; provided, however, that U1 shall
not be responsible for losses of Concentrate that occur in the ordinary course
of Processing. U1 shall compensate Strata for any lost Concentrate for which U1
is responsible as follows. U1 shall compensate Strata (a) for lost packaged
Concentrate by delivery to the Strata inventory of Concentrate of U.S. origin
concentrate with a U3O8 weight equivalent to the pounds of U3O8 of the lost
Concentrate, (b) for U3O8 lost after the U3O8 is eluted from the Strata Resins
but prior to packaging, by delivery to the Strata inventory of Concentrate of
U.S. origin concentrate with a U3O8 weight equivalent to the pounds of U3O8 that
reasonably would have been recovered if the Processing and packaging had been
completed based on the Estimated Weight Concentrate of the lost processing run.
U1 shall compensate Strata for lost Resins by (a) delivery to Strata’s account
at the Converter of U.S. origin concentrates with a U3O8 weight equivalent to
the reasonably estimated U3O8 that would have been recovered from the lost
Resins based on the immediately prior Processing cycle of Resins that were not
lost, plus (b) either replacement of lost Resins with resins of the same kind,
quality and quantity, or the cash equivalent at then-current market replacement
prices for such resins.

10

7.      INDEPENDENT
CONTRACTOR. U1 shall perform under this Agreement as an independent
contractor and shall at all times have and maintain complete control over the
method of performing the services under this Agreement and its employees,
agents, and subcontractors. Strata shall have no right or authority to direct or
control U1’s employees, agents, or subcontractors in their performance under
this Agreement, and neither U1 nor its employees, agents or subcontractors shall
be deemed servants, agents or representatives of Strata Nothing contained herein
shall be deemed to create, and the parties do not intend to create, any
relationship of agency, partnership, or joint venture between them. This
Agreement is, and the rights and obligations of the parties are, strictly
limited to the matters set forth herein. Each of the parties shall have the free
and unrestricted right to independently engage in and receive the full benefits
of any and all business ventures of any sort whatever, whether or not
competitive with the matters contemplated hereby, without consulting the other
or inviting or allowing the other to participate therein. The doctrines of
“corporate opportunity” or “business opportunity” shall not be applied to any
other activity, venture, or operation of either party. 

8.      INDEMNIFICATION.

8.1     
By Strata. Subject to the limitations set forth in Section 23,
Strata shall defend, indemnify, and hold harmless U1, its affiliate, subsidiary
and parent companies, and its and their officers, directors, employees, agents
and representatives (collectively, for purposes of this Section 8, “the U1
Indemnified Parties”) from and against any and all liabilities, claims, losses,
damages, penalties, forfeitures, suits, and all costs incident thereto,
including costs of defense and reasonable attorneys’ fees (collectively, for
purposes of this Section 8, “Losses”), arising from or related to (i) any
violation by Strata of any law, governmental regulation or order, in connection
with its activities under this Agreement, (ii) Strata’s breach of any term of
this Agreement, (iii) any decontamination of tanker trucks hereunder, (iv) any
property damage, injury or death arising out of Strata’s exercise of its
inspection rights under Section 1.7, which is not the responsibility of U1 under
such Section 1.7, or (v) any grossly negligent or willful act or omission of
Strata, its employees, subcontractors or agents. Additionally, if any of
Strata’s employees or subcontractors (including any employee of such
subcontractors) is unable to collect workers compensation benefits under
Strata’s Wyoming workers compensation coverage with respect to any injury, loss,
harm or damage in connection with the performance of this Agreement, Strata
shall defend, indemnify, and hold harmless the U1 Indemnified Parties from and
against any and all Losses arising out of or related to any such occurrence.

8.2      By
U1. Subject to the limitations set forth in Section 23, U1 shall
defend, indemnify, and hold harmless Strata, its affiliate, subsidiary and
parent companies, and its and their officers, directors, employees, agents and
representatives (collectively, for purposes of this Section 8, the “Strata
Indemnified Parties”) from and against any and all Losses arising from or
related to (i) any violation by U1 of any law, governmental regulation or order,
in connection with its activities under this Agreement, (ii) U1’s breach of any
term of this Agreement, (iii) any property damage, injury or death which is the
responsibility of U1 under Section 1.7, or (iv) any grossly negligent or willful
act or omission of U1, its employees, subcontractors or agents. Additionally, if
any of U1’s employees or subcontractors (including any employee of such
subcontractors) is unable to collect workers compensation benefits under U1’s
Wyoming workers compensation coverage with respect to any injury, loss, harm or
damage in connection with the performance of this Agreement, U1 shall defend,
indemnify, and hold harmless the Strata Indemnified Parties from and against any and all Losses
arising out of or related to any such occurrence.

11

8.3      Indemnification
Procedures. If any claim or demand (a “Claim”) is asserted against
any of the U1 Indemnified Parties or the Strata Indemnified Parties (for
purposes of the Section 8.3, an “Indemnified Party”) in respect of which such
Indemnified Party may be entitled to indemnification under this Agreement, or if
an Indemnified Party otherwise believes it may be entitled to indemnification
under this Agreement, written notice of such Claim (together with a reasonable
description thereof) shall promptly be given to the other party (for purposes of
this Section 8.3, the “Indemnifying Party”). Failure to provide such notice
shall not relieve the Indemnifying Party of any of its obligations hereunder
except to the extent the Indemnifying Party is materially prejudiced thereby.
The Indemnifying Party shall have the right, but not the obligation, by
notifying the Indemnified Party within 30 days after its receipt of the notice
of the Claim, to assume the entire control of (subject to the right of the
Indemnified Party to participate, at the Indemnified Party’s expense and with
counsel of the Indemnified Party’s choice), the defense, compromise, or
settlement of the matter, including, at the Indemnifying Party’s expense,
employment of counsel of the Indemnifying Party’s choice. Any damages to the
assets or business of the Indemnified Party caused by a failure by the
Indemnifying Party to defend, compromise, or settle a Claim in a reasonable and
expeditious manner requested by the Indemnified Party, after the Indemnifying
Party has given notice that it will assume control of the defense, compromise,
or settlement of the matter, shall be included in the damages for which the
Indemnifying Party shall be obligated to indemnify the Indemnified Party. Any
settlement or compromise of a matter by the Indemnifying Party shall include a
full release of Claims against the Indemnified Party which has arisen out of the
indemnified Claim, and shall be made only with the consent of the Indemnified
Party, such consent not to be unreasonably withheld or delayed. The Indemnified
Party may participate in the defense of any Claim at its expense, and until the
Indemnifying Party has agreed to defend such Claim, the Indemnified Party may
file any motion, answer or other pleading or take such other action as it deems
appropriate to protect its interests or those of the Indemnifying Party. If the
Indemnifying Party does not elect to contest any third-party Claim, the
Indemnifying Party shall be bound by the results obtained with respect thereto
by the Indemnified Party, including any settlement of such Claim and all costs
incurred by the Indemnified Party in the defense of the Claim including the
reasonable cost of counsel. 

9.      INSURANCE
Strata shall, at its sole expense, maintain during the term of this
Agreement with respect to its operations under this Agreement insurance with
nationally-recognized carriers and policies which name U1 as an additional
insured and which provide at least (a) general comprehensive liability insurance
providing bodily injury, property damage, and personal injury coverage with a
combined single limit of not less than $5,000,000 per occurrence and (b)
automobile liability insurance (which covers the tanker trucks delivering the
Resins) covering liability arising out of the ownership, maintenance, or use of
owned, non-owned or hired autos or trucks with minimum limits of $5,000,000
combined single limit bodily injury and property damage. U1 shall, at its sole
expense, maintain during the term of this Agreement with respect to its
operations under this Agreement insurance with nationally-recognized carriers
and policies which name Strata as an additional insured and which provide at
least general comprehensive liability insurance providing bodily injury,
property damage, and personal injury coverage with a combined single limit of
not less than $5,000,000 per occurrence. In addition, each party shall comply with the workers’ compensation act of
the State of Wyoming and carry and maintain in effect workers’ compensation
insurance in compliance with the applicable workers’ compensation laws of
Wyoming as amended from time to time. Prior to delivering Resins to ICPP, and
from time to time thereafter, either party shall, at the request of the other
party and as a condition to subsequent deliveries, provide the requesting party
with duly executed certificates of insurance as evidence that the liability
coverage(s) required in this Agreement are maintained in full force and effect.
Each such policy shall contain provisions that the insurance company will have
no right of recovery or subrogation against the named additional insured party,
its affiliate, subsidiary or parent companies.

12

10.      FORCE
MAJEURE. Any delays in or failure of performance by either party,
other than the obligation to pay for services rendered or to pay penalties or
late charges owed hereunder, shall not constitute a default hereunder if and to
the extent such delays, or failures of performance, are caused by occurrences
which are beyond the reasonable control of either party, as the case may be,
whether or not reasonably foreseeable, including but not limited to
expropriation or confiscation of facilities; acts of God or the public enemy;
accidents, changes in law; compliance with any governmental law, regulation, or
order, whether valid or invalid and whether now existing or hereafter created;
act of war; rebellion or sabotage or damage resulting therefrom; flood; fire;
lightning; epidemic; riots or strikes; restraint by court order or public
authority; and the inability to timely obtain any required governmental permits,
licenses or other approvals pertaining to operation of ICPP on terms reasonably
acceptable to U1; but only to the extent such occurrences are not within the
reasonable control of the party affected by the event of force majeure and which
by the exercise of reasonable diligence such party is unable to overcome. Either
party whose performance is affected by an event of force majeure must, promptly
after it becomes aware of the event of force majeure, notify the other party of
the nature of the event and the expected duration thereof. If either party is
unable to perform its obligations under this Agreement as a result of an event
of force majeure as described above for a period in excess of 180 consecutive
days, the party not affected by the force majeure event may terminate this
Agreement. Any event of force majeure declared by Strata shall not relieve
Strata of its obligation to pay the shortfall amounts described in Section
3.2(c) . 

11.     
NRC LICENSE. The parties acknowledge that NRC Regulatory Issue
Summary (“RIS”) 2012-06, dated April 16, 2012, states that the receipt and
processing of “equivalent feed” (ion exchange resin media) at an NRC-licensed
uranium recovery facility, whether conventional, heap leach, or ISR, does not
require a license amendment when the resin is chemically and physically
essentially the same as that which is currently processed, would be processed
using the facility’s existing equipment, does not exceed the licensed uranium
production limit and stays within the facility’s environmental and safety review
envelope. With this understanding, U1 does not intend to apply for a license
amendment to process the Strata Resins. However, if regulatory requirements
change and an amendment or other approval of the processing in accordance with
the current license is necessary, U1 will apply to the NRC for an amendment to
its Source Material License SUA-1341 in order to permit it to process Resins in
accordance with the terms of this Agreement. U1’s receipt of an amendment, or
the approval of the processing in accordance with the current license, is a
condition precedent to U1’s obligation to process Resins pursuant to this
Agreement. If U1 does not receive such amendment, or the approval of the
processing in accordance with the current license, U1 may terminate this
Agreement upon notice to Strata, in which case both parties shall be fully
released from all obligations hereunder. 

13

12.      TAXES
AND ROYALTIES. Strata shall be responsible for all property taxes
and any other taxes or governmental charges, royalties or fees upon the mining,
severance from the ground, ownership, possession, sale or use of any Resins, the
uranium content of such Resins, and the Concentrate, including any such taxes or
fees charged while the Resins or Concentrate are in the possession of U1 for
processing under this Agreement, other than the Concentrate retained by U1 as
compensation pursuant to Section 4.1(b) from and after the date on which U1
receives title to such Concentrate. 

13.     
REPRESENTATIONS, WARRANTIES AND ADDITIONAL COVENANTS. 

13.1      Corporate
Actions and Authority. Each of U1 and Strata represents and
warrants to the other that:

(a)      It
is a corporation duly organized, validly existing, and in good standing under
the laws of its state of incorporation, and is qualified to do business and in
good standing under the laws of the State of Wyoming.

(b)     
It has the requisite corporate power and authority (i) to enter into
this Agreement and all other agreements contemplated hereby, and (ii) to carry
out and perform its obligations under the terms and provisions of this Agreement
and all agreements contemplated hereby. 

(c)      All
requisite corporate action on its part, and on the part of its officers,
directors, and shareholders, necessary for the execution, delivery, and
performance by it of this Agreement and all other agreements contemplated
hereby, have been taken. This Agreement and all agreements and instruments
contemplated hereby are, and when executed and delivered by it (assuming valid
execution and delivery by the other party), will be, legal, valid, and binding
obligations of it enforceable against it in accordance with their respective
terms. The execution, delivery and performance by it of this Agreement will not
violate any provision of law; any order of any court or other agency of
government; or any provision of any indenture, agreement or other instrument to
which it is a party or by which its properties or assets are bound; or be in
conflict with, result in a breach of or constitute (with due notice and lapse of
time) a default under any such indenture, agreement or other instrument.
Notwithstanding the foregoing, no representation is made as to the availability
generally of equitable remedies for the enforcement of this Agreement or any
other agreement contemplated hereby. Additionally, this representation is
limited by applicable bankruptcy, insolvency, moratorium, and other similar laws
affecting generally the rights and remedies of creditors and secured parties.

13.2      Compliance
With Laws. Strata and U1 each represent and warrant to the other
that in conducting activities under this Agreement it will comply with all
applicable federal, state and local laws, rules and governmental regulations,
and, subject to Section 11, obtain and maintain any licenses which are required,
in order to perform their respective obligations under this Agreement, including
without limitation governmental regulations or licenses required by the U.S.
Department of Energy, the U.S. Department of Transportation, or the NRC. Each of
Strata and U1 will, upon written request by the other, provide reasonable proof
of any required compliance and/or licenses. 

14

13.3      Title
to Resins. Strata represents and warrants that it will have good
title to all Resins delivered to U1 hereunder, and that the uranium content of
all Resins will consist of natural uranium, not irradiated nor in any degree
depleted in U235 content. 

13.4      Confidentiality.
Each party, and its employees and agents, shall keep confidential and not
disclose to any third party either (a) any information about the existence of
this Agreement or its contents, except to the extent a party must disclose the
existence of this Agreement to perform its obligations under this Agreement,
such as to insurance brokers or companies or public carriers, or to affiliates,
attorneys, auditors or financing sources, or (b) any information obtained about
the other party or its financial or business operations as a result of this
Agreement and the work performed hereunder, unless such information (i)
hereafter becomes generally available to the public through no fault of the
receiving party, (ii) has or may come into the possession of the receiving party
from other than the communicating party and otherwise than in breach of a duty
of confidence, (iii) is already in the possession of the receiving party at the
time of its first communication from the communicating party, or (iv) is
required to be disclosed by either party pursuant to applicable laws or stock
exchange rules. To the extent either party is required by law or stock exchange
rule to disclose any such information, it may do so only after providing the
other party with not less than three business days to review and comment on any
proposed release or announcement. Otherwise, each party is prohibited from
issuing any press releases or other public announcements concerning this
Agreement or any information generated pursuant thereto without the prior
written approval of the other party. In addition, the parties specifically agree
that any press release announcing the execution and delivery of this Agreement
will specifically and expressly reference the fact that both parties’
obligations under this Agreement are contingent upon U1’s ability to obtain an
amendment to its Source Material License from the NRC. 

13.5      No
Solicitation by Strata During the Term of this Agreement, Strata
agrees not to hire, make offers of employment to, or solicit for employment, any
employee of either U1 or independent contractors of U1 who are engaged in any
activities at ICPP or any other facilities owned or operated by U1 in Wyoming,
except to the extent any such employees or independent contractors respond to
usual and customary advertisements for employees not specifically targeted at
employees of U1 or independent contractors of U1, unless and until any such
employee’s or independent contractor’s relationship with U1 has been terminated
for at least one year prior to any such hiring, offer or solicitation. 

13.6      No
Solicitation by U1 During the Term of this Agreement, U1 agrees not
to hire, make offers of employment to, or solicit for employment, any employee
of either Strata or independent contractors of Strata who are engaged in any
activities at facilities owned or operated by Strata in Wyoming, except to the
extent any such employees or independent contractors respond to usual and
customary advertisements for employees not specifically targeted at employees of
Strata or independent contractors of Strata, unless and until any such
employee’s or independent contractor’s relationship with Strata has been
terminated for at least one year prior to any such hiring, offer or
solicitation. 

14.      LEGISLATIVE
AND REGULATORY CHANGES. The parties hereto recognize that during
the term of this Agreement legislative or regulatory changes may take place
which could increase the cost of U1’s performance under the Agreement, in
addition to direct costs which U1 may pass along to Strata pursuant to
Section 4.1. If, from time to time subsequent to the Effective Date of this
Agreement any federal, state, or local laws or regulations are adopted, or if
any changes in, additions to, or more strict interpretations of existing
federal, state or local laws or regulations are instituted (such as, but not
limited to, those relating to the handling of uranium-bearing materials, land
use, reclamation, water or air quality or other environmental considerations,
employment, health, and safety, but excluding laws fixing tax rates on net
income), the effect of which shall be to increase the cost of U1’s performance
hereunder, U1 shall give written notice to Strata that such an increase in cost
has occurred or is expected, including in such notice a statement of the
estimated increase in the cost per pound of uranium, and the parties shall
promptly and in good faith negotiate a compensating adjustment in the fee
arrangement set forth in Section 4.1. If the parties are unable to agree upon
the amount of such adjustment within 60 days after the date of U1’s notice, then
at any time thereafter either party may by written notice terminate this
Agreement.

15

15.      TERMINATION.

15.1     
By Either Party. In addition to the termination provisions set
forth in Sections 10, 11 and 14, (a) this Agreement may be terminated by either
party upon 10 days’ prior written notice if the other party has breached any
obligation under this Agreement through no fault of the party initiating
termination, unless the breaching party cures or commences diligent efforts to
cure the breach within 10 days after receipt of the notice; (b) either party may
terminate this Agreement for any reason, with or without cause, upon [***] prior
written notice to the other party, provided however, that such notice may not be
given prior to July 1, 2016.

15.2      Consequences.
Termination of this Agreement for any circumstance set forth above will
be effective on the date specified in the notice of termination (so long as that
specified date is consistent with the provisions of this Section 15 and Section
10 or Section 14, if applicable), and termination of this Agreement shall not
affect (a) either party’s obligation to pay monies owed to the other under this
Agreement as of the effective date or such termination, or (b) the parties’
obligations with respect to Resins (including, without limitation, U1’s
obligations to Process and dry the same and Strata’s obligations to pay for the
same and pay any penalties attributable to the same) which have, as of the
effective date of termination, been delivered to and accepted by U1 for
Processing and drying.

16.      DELEGATION
AND ASSIGNMENT. U1 may assign and delegate its rights and
obligations under this Agreement to any third party purchaser or operator of
ICPP. Strata may assign and delegate its rights and obligations under this
Agreement to any third party purchaser of all, or substantially all, of the
assets of Strata or in connection with a merger of Strata into an entity that
succeeds to all or substantially all of the assets of Strata. Any such
assignment and delegation by Strata, however, shall not change the definition of
the terms “Owned Properties.” Otherwise, neither party shall assign or delegate
to any third party any of its rights or obligations under this Agreement without
the prior written consent of the other party, which such consent the other party
may withhold in its sole discretion. Any permitted delegation or assignment of
rights shall be made fully subject to the terms and conditions of this Agreement
and such assignee must agree in writing to be bound by all such terms and
conditions. In that event, the assignor shall have no further liabilities or
obligations under this Agreement. Any assignment made in violation of this
Section 16 shall be void. 

16

17.      NOTICES
All notices or other communications that are required to be given or may be
given to the parties pursuant to the terms of this Agreement shall be sufficient
in all respects if given in writing and if delivered (a) personally, (b) by
reputable overnight courier, or (c) by registered or certified mail, postage
prepaid, to the receiving party at the addresses set forth below. Each party may
change the address at which it is to receive communications by written notice to
the other party in accordance with the terms of this Section 17. Notice shall be
deemed given on the date of delivery, in the case of personal delivery or
delivery by courier, or on the delivery date as specified on the return receipt
in the case of registered or certified mail. 

Uranium One Americas,
Inc.
Attention: President 
907 North Poplar 
Suite 260, 
Casper,
WY 82601 
Facsimile No. (307) 237-8235 

Strata Energy Inc.

Attention: President 
P. O. Box 2318 
Gillette, Wyoming 82717

Facsimile No.: (866) 468-5041

18.      APPLICABLE
LAW. The validity, construction, operation and performance of this
Agreement shall be governed in accordance with the laws of the State of Wyoming
without giving effect to its principles of conflicts of law. Subject to the
obligations of the Parties to arbitrate under Section 24, any action or
proceeding relating in any way to this Agreement shall be brought and enforced
only in the courts of the State of Wyoming or the federal court sitting in
Wyoming, and the parties irrevocably submit to the jurisdiction of each such
court with respect to any such action or proceeding. 

19.      ENTIRE
AGREEMENT. This Agreement constitutes the entire understanding
between the parties hereto, and cancels and supersedes all prior negotiations,
representations, understandings, and agreements, either written or oral, with
respect to the subject matter hereof. Any changes, alterations, or modifications
to this Agreement must be in writing and signed by all parties hereto.

20.      SEVERABILITY.
The invalidity or unenforceability of any provision of this Agreement shall not
affect the other provisions hereof, and this Agreement shall be construed as if
such invalid or unenforceable provision were omitted. 

21.      ATTORNEYS’
FEES. The prevailing party in any arbitration or litigation
concerning the construction or interpretation of this Agreement, or either
party’s performance of its obligations under this Agreement, shall be entitled
to recover reasonable attorneys’ fees, costs and necessary disbursements
actually incurred by it in any such proceeding, in addition to any other relief
to which that party may be entitled. This provision shall be construed as
applicable to the entire Agreement. 

17

22.      BINDING
AGREEMENT. This Agreement shall be binding upon and shall inure to
the benefit of U1 and Strata, and their respective successors and permitted
assigns. 

23.     
LIMITATION OF DAMAGES. NEITHER U1 NOR STRATA SHALL BE LIABLE FOR ANY
INCIDENTAL OR CONSEQUENTIAL DAMAGES OR DAMAGES FOR LOST PROFITS ARISING OUT OF
OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THE TERMINATION HEREOF FOR ANY REASON. 

24.      ARBITRATION.
The parties hereto shall use their respective reasonable best efforts to settle
any and all disputes, claims, controversies, questions or differences arising
out of or relating to this Agreement or breach thereof. To this effect, in the
event of any such dispute, the parties shall negotiate with each other in good
faith to reach a resolution of that dispute satisfactory to both parties. If the
parties do not resolve the matter within a period of 30 days after the parties
have commenced efforts to resolve the matter, then upon notice by either party
to the other party, the disputes, claims, controversies, questions or
differences shall be finally settled by arbitration (rather than by judicial
resolution) in accordance with the arbitration provisions set forth in the
remainder of this Section 24. 

The following procedural rules
shall apply to any arbitration conducted pursuant to this Agreement: 

(a)      Any
controversy of claim arising out of or related to this Agreement shall be
settled by final and binding arbitration conducted expeditiously in accordance
with the AAA Commercial Arbitration Rules, the Optional Procedures for Large,
Complex Commercial Disputes, and the Optional Rules for Emergency Measures of
Protection (the “Rules”). In the event of a conflict between this Section 24 and
the Rules, this Section 24 shall govern. The attorney-client and work product
privileges will be honored in the arbitration as though the case was being
determined in a Wyoming court. 

(b)     
The arbitration shall be conducted before three independent and
impartial arbitrators, one to be appointed by each party within 15 days after
either party gives written notice of the initiation of arbitration proceedings
to the other party, and the third to be appointed by the two arbitrators
selected by the parties, not later than 20 days after they have both been
selected. The parties may elect by written agreement to conduct any arbitration
before a single arbitrator mutually agreeable to them. 

(c)      The
arbitrators shall permit and facilitate such discovery as they determine is
appropriate in the circumstances, taking into account the needs of the parties
and the desirability of making discovery expeditious and cost-effective. Such
discovery may include prehearing depositions, particularly depositions of
witnesses who will not appear personally to testify, if there is a demonstrated
need for such depositions. The arbitrators may issue orders to protect the
confidentiality of proprietary information, trade secrets and other sensitive
information disclosed in discovery. 

(d)      The
following rules shall apply to any arbitration hearing:

18

(i)      The proceedings shall be
conducted in an expeditious manner and, to the extent possible, with the goal of
having the final award rendered within three months after the selection of the
arbitrators has been completed. The panel is empowered to impose time
limitations it considers reasonable for each phase of the proceeding. 

(ii)      The arbitrators shall
actively manage the proceedings as they deem best so as to make the proceedings
fair, expeditious, economical, and less burdensome than litigation. To provide
for speed and efficiency, the arbitrators may: 

	 	(A) 	
      Limit issues so as to focus on the core of the
      dispute;

	 	 	 
	 	(B) 	
      Limit the time allotted to each party for presentation of
      its case and any rebuttal; and

	 	 	 
	 	(C) 	
      Exclude testimony and other evidence they deem irrelevant
      or cumulative.

(e)      The
arbitrators shall have authority to award any remedy or relief that a court of
the State of Wyoming could order or grant. In making monetary awards, the
arbitrators are empowered to award only compensatory damages. Each party hereby
irrevocably waives any damages in excess of compensatory damages, including a
waiver of any punitive or multiple damages. The arbitrators may, in their
discretion, grant pre-award interest, and if so, such interest may be at
commercial rates during the relevant periods. The arbitrators may, in the course
of proceedings, order any provisional remedy or conservatory measure, including
but not limited to attachment, specific performance, preliminary injunction or
the deposit of specified security, which they consider to be necessary, just and
equitable. The failure of a party to comply with such an interim order, after
due notice and opportunity to cure such noncompliance, may be treated by the
arbitrators as a default and all or some of the claims or defenses of the
defaulting party may be stricken and partial or final award entered against such
party, or the arbitrators may award such lesser sanctions as they deem
appropriate. A request for interim or provisional relief to a court shall not be
deemed incompatible with the agreement to arbitrate or as a waiver of that
agreement. 

(f)      Prior
to rendering their final award, the arbitrators shall submit to the parties an
unsigned draft of the proposed award (exclusive of any award of costs and
attorneys fees) and each party, within three business days after receipt of such
draft award, may serve on the other parties to the arbitration and file with the
arbitrators: (i) a written statement outlining any claimed errors of fact, law,
computation or otherwise; and (ii) a certification by the party’s counsel of the
costs and attorneys’ fees directly expended in the arbitration. Within five
business days after receipt of the written statement of each party to the
arbitration, the arbitrators shall render their final award. The award shall
briefly state the reasoning on which it rests. 

19

(g)      In
the final award, the arbitrators are authorized and encouraged to award, as the
arbitrators deem fair and just, to the party deemed by the arbitrators to be the
prevailing party, that party’s costs and attorneys’ fees as set forth in Section
21. 

(h)      All
deadlines specified in this Section 24 may be extended by mutual written
agreement of the parties. 

(i)      Each
party shall be required to continue to perform its obligations under this
Agreement pending final resolution of any dispute. 

(j)      The
procedures specified in this Section 24 will be the sole and exclusive
procedures for the resolution of disputes between the parties arising out of or
relating to this Agreement; provided, however, that, prior to the appointment of
the arbitrators, a party may seek a preliminary injunction or other preliminary
judicial relief in the courts of the State of Wyoming if in the judgment of that
party such action is necessary to avoid irreparable damage or to preserve the
status quo. Despite the initiation of any such judicial proceedings, the parties
will continue to participate in good faith in the procedures specified in this
Section 24. 

IN WITNESS
WHEREOF, the parties have executed this Agreement as of the Effective
Date.

	STRATA ENERGY INC. 	 	URANIUM ONE AMERICAS, INC. 
	 	 	 
	By: 	 	By:
  
	 	 	 
	Name: 	 	Name:
    
	 	 	 
	Title: 	 	Title: 
	 	 	 
	By: 	 	By:
  
	 	 	 
	 	 	 
	Name: 	 	Name:
    
	 	 	 
	Title: 	 	Title: 

20

 

 

 

21

EXHIBIT A 

EXAMPLE ELUTION REPORT

22

EXHIBIT B

EXAMPLE DRUM REPORT

23

EXHIBIT C

ACCEPTABLE RESINS

Lanxess Lewitit 6362
Dow 21K 

24

EXHIBIT D

DELIVERY NOTICE

	  	 	Monthly Delivery 
	  	 	Lbs. Estimated 
	  	 	Weight Concentrate (Note: to
  
	  	 	be within +/- 10% of 1/12 the 
	  	 	annual amount below (or 1⁄4 in 
	Year
    	 	2015, as the case may be) 
	2015 (by month) 	 	September 
	  	 	October 
	  	 	November 
	  	 	December 
	  	 	  
	2015 Annual Total: 	 	  
	  	 	  
	  	 	  
	2016 (by month) 	 	January 
	  	 	February 
	  	 	March 
	  	 	April 
	  	 	May 
	  	 	June 
	  	 	July 
	  	 	August 
	  	 	September 
	  	 	October 
	  	 	November 
	  	 	December 
	  	 	  
	2016 Annual Total (Note: to be a minimum of 300,000
      pounds): 		

25

	  	 	Monthly Delivery 
	  	 	Lbs. Estimated 
	  	 	Weight Concentrate (Note: to 
	  	 	be within +/- 10% of 1/12 the 
	  	 	annual amount below (or 1⁄4 in 
	Year 	 	2015,
      as the case may be) 
	2017 Annual Total (estimate) (Note: to be a minimum of 300,000
      pounds) 		
	 	 	 
	2018 Annual Total (estimate) (Note: to be a
      minimum of 300,000 pounds) 		
	 	 	 
	2019 Annual Total (estimate) (Note: to be a
      minimum of 300,000 pounds) 		

26

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