Document:

Exhibit 10.28

 

“Certain
portions of this Exhibit have been omitted and filed separately with the
Commission based upon a request for confidential treatment.”

 

URANIUM SUPPLY CONTRACT

 

 

BETWEEN

 

ITOCHU CORPORATION

 

AND

 

URI, INC.

 

 

Table of Contents

 

	
  Preamble

  	
  Object
  of the Contract

  	
   

  
	
   

  	
   

  	
   

  
	
  Article I

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  Article II

  	
  Annual
  Quantities and Delivery Schedule of Concentrates

  	
   

  
	
   

  	
   

  	
   

  
	
  Article III

  	
  Delivery

  	
   

  
	
   

  	
   

  	
   

  
	
  Article IV

  	
  Specifications

  	
   

  
	
   

  	
   

  	
   

  
	
  Article V

  	
  Warranty
  and Limitation of Liability

  	
   

  
	
   

  	
   

  	
   

  
	
  Article VI

  	
  Price
  of Concentrates

  	
   

  
	
   

  	
   

  	
   

  
	
  Article VII

  	
  Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  Article VIII

  	
  Invoicing
  and Payment

  	
   

  
	
   

  	
   

  	
   

  
	
  Article IX

  	
  Force Majeure

  	
   

  
	
   

  	
   

  	
   

  
	
  Article X

  	
  Non Compliance

  	
   

  
	
   

  	
   

  	
   

  
	
  Article XI

  	
  Term
  and Termination

  	
   

  
	
   

  	
   

  	
   

  
	
  Article XII

  	
  Governing
  Law and Arbitration

  	
   

  
	
   

  	
   

  	
   

  
	
  Article XIII

  	
  Governmental
  Permits

  	
   

  
	
   

  	
   

  	
   

  
	
  Article XIV

  	
  Safeguards
  – Use of Concentrates

  	
   

  
	
   

  	
   

  	
   

  
	
  Article XV

  	
  General
  and Notices

  	
   

  

 

2

 

Preamble – Object of the
Contract

 

This Contract is for the sale of Uranium Concentrates
made this          day of December 2003,

 

Between:                                              ITOCHU Corporation
having its principal office at 5-1, Kita-Aoyama 2-ohome, Minato-ku, Tokyo 107-8077,
JAPAN (hereinafter in this Contract called “Buyer”) on the one part.

 

And:                                                                    URI, Inc., a
wholly-owned subsidiary of Uranium Resources, Inc. ( hereinafter in this
Contract called “ Seller’ s Parent Company “ ) and a corporation incorporated
in the state of Delaware, and having its principal office at 650 South Edmonds
Lane, Lewisville, TX, USA 75067; (hereinafter in this Contract called “Seller”)
on the other part.

 

Whereas:                                            Seller and Seller’s Parent Company has agreed to sell to Buyer and
Buyer has agreed to purchase Concentrates (as hereinafter defined) from Seller
on the terms and conditions hereinafter set forth;

 

Now in consideration of the mutual
covenants and agreements herein contained it is hereby agreed as follows:

 

3

 

Article I – Definitions

 

1.1                       In this Contract unless the context otherwise requires:

 

a.                   “Book Transfer” is the transfer of U3O8 in the
records of the Converter from the Concentrates account of Seller to the
Concentrates account of Buyer, where the final weight and determination of the
U3O8 content of the Concentrates has already been made by
the Converter;

 

b.                  “Concentrates” means natural uranium concentrates containing U3O8,
which will be supplied from United States mines owned by the Seller;

 

c.                   “Contract” means this Contract as the same may be modified or
amended from time to time in accordance with its terms and expressions “herein”,
“hereto”, “hereunder”, “hereof” and similar expressions refer to this Contract;

 

d.                  “Converter” means one or more of the following facilities:

(i)      Honeywell
International’s facility at Metropolis, Illinois, U.S.A.,

(ii)   Cameco’s
facility at Blind River and Port Hope, Ontario, Canada;

 

e.                   “Delivery Certificate” means a document including the information of
Delivery Date, delivered quantity and origin by which the Converter confirms
Book Transfer of Concentrates for the account of and on behalf of Buyer, and
which has been signed by an authorised person of the Converter;

 

f.                     “Delivery Year” means the calendar year during which delivery of a
quantity of Concentrates is made or scheduled to be made pursuant to this
Contract;

 

g.                  “Month” means calendar month;

 

h.                  “Pound (lb)” means 1 pound avoirdupois;

 

i.                      “Specifications” means the requirements of the Converter in effect
for each delivery of Concentrates in order to convert from U3O8
to UF6 without any penalty or surcharge or the like imposed by the
Converter;

 

j.                      “U3O8” means natural triuranium octoxide, the
quantity of the element uranium in Concentrates being established by assay and
converted to U3O8 by multiplying the quantity of uranium
by 1.1792;

 

k.                   “UF6” means natural uranium hexafluoride;

 

l.                      “Year” means a period of 12 consecutive calendar months commencing
on 1st January and ending on 31st December and “Annual”
has a corresponding meaning.

 

4

 

1.2

a.                   In this Contract, unless the contrary intention appears, words
importing the singular shall include the plural and vice versa, and words
importing any gender shall include any other gender;

 

b.                  In this Contract, unless the context requires otherwise, a reference
to any statute, statutory rule or regulation shall means that which is
amended or substituted if such is amended or substituted during the term of
this Contract;

 

c.                   The Article headings shall not affect the interpretation of
this Contract and are used solely for reference purposes;

 

d.                  In making calculations in accordance with the terms of this
Contract, unless defined elsewhere, any figure shall be calculated to the nearest
second decimal place.  Whenever pursuant
to this Contract a numerical figure is to be rounded or calculated to fewer
digits than the number of digits available, then unless otherwise specified
herein, the following procedures shall be applied;

 

(i)                 If the first digit discarded is less than 5, the last digit retained
shall not be changed;

 

(ii)              If
the first digit discarded is equal to or greater than 5, the last digit
retained shall be increased by 1.

 

Article II – Annual
Quantities and Delivery Schedule of Concentrates

 

2.1                       Subject to Article IX and X, Seller shall deliver to Buyer
Concentrates in each Delivery Year 2005 through to and including 2008 as
follows:

 

	
  Delivery Year

  	
   

  	
  Base Quantity

  Lb U308

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  300,000

  	
   

  
	
  2006

  	
   

  	
  300,000

  	
   

  
	
  2007

  	
   

  	
  300,000

  	
   

  
	
  2008

  	
   

  	
  300,000

  	
   

  

 

Buyer has a
right to exercise plus or minus 15 percent flexibility on the above nominal
quantities.

 

2.2                       The following quantity, converter and delivery date nomination
arrangements are agreed:

 

a)                            By the 1st September of the year prior to the delivery year,
Buyer shall provide a following documents to Seller:

 

i)                 Binding
notice ( “September Binding Notice” )on the
delivery quantity and delivery location.

ii)              Non-Binding
notice for the delivery month(s)

 

5

 

At least One Hundred and Twenty (120) days
prior to the delivery date, Buyer shall provide a Binding notice ( “ 120 days Binding Notice “) for the delivery date.

 

There shall be no more two (2) deliveries
in each of the delivery years.

 

2.3                       Each party shall consider in good faith any request by the other to
vary the Delivery Schedule, but the Delivery Schedule as determined
pursuant to this Article shall not be amended unless the parties agree.

 

Article III – Delivery

 

3.1                       Seller shall deliver Concentrates to Buyer, and Buyer shall take
delivery of Concentrates from Seller by Book Transfer at the Converter selected
under Section 2.3.

 

(a)                        The delivery shall be deemed to have been made when Concentrates
containing a specified quantity of U3O8 are transferred
to Buyer’s account by Book Transfer.

 

(b)                       Seller shall notify Buyer thereof immediately upon transfer of
Concentrates.

 

3.2                       Title to, and all risks of loss in, and liability for, any personal
loss or injury or any property damage caused by Concentrates delivered to Buyer
in accordance with Section 2.1 shall pass to Buyer when the Concentrates
are transferred to Buyer’s account by Book Transfer.

 

3.3                       Subject to this Contract, Seller shall indemnify and hold harmless
Buyer from and against all costs, expenses, claims, damages and injuries
incurred or arising in respect of the ownership, storage, transportation,
possession or use of Concentrates prior to Book Transfer to Buyer by Seller
pursuant to this Contract.  Buyer shall
indemnify and hold harmless Seller from and against all costs, expenses,
claims, damages and injuries arising in respect of the ownership, storage,
transportation, possession or use of Concentrates subsequent to Book Transfer
to Buyer by Seller pursuant to this Contract.

 

Article IV – Specifications

 

4.1                       The Concentrates delivered hereunder by Seller to Buyer shall
conform to the Specifications of the selected Converter at the time of
delivery.

 

Article V – Warranty
and Limitation of Liability

 

5.1                       Seller warrants that it will give to Buyer good and marketable title
to all Concentrates delivered hereunder and that such Concentrates will be
delivered free and clear of all liens, claims, charges
and encumbrances of any kind and type whatsoever.

 

5.2                       Under no circumstances whatsoever and howsoever arising shall either
party be entitled to recover indirect or consequential damages of any nature
including, but not by way of limitation, any consequential loss or damage
incurred by the other party.

 

6

 

Article VI – Price of
Concentrates

 

For all pounds U3O8
delivered hereunder, the price (“Purchase Price”) to Seller shall be:

 

The simple average of (A) US$[REDACTED] per pound escalated from the 4th
quarter of calendar year 2003 until the last day of the quarter immediately
prior to the delivery quarter by the changes in the U.S. GDP-IPD index, and (B) the
Market Price.  In no event, however,
shall the price paid to Seller be less than US$[REDACTED] per
pound U3O8 or higher than US$[REDACTED] per pound U3O8, both
values respectively escalated as per (A) above.

 

The Market Price shall be determined as the
simple average of 1) the U3O8 Spot Price
Indicator last published by TradeTech during the month immediately preceding
the month in which a 120 days Binding Notice is due from Buyer and 2) the Ux U3O8
Price last published by the Ux Consulting Co. for the month immediately
preceding the month in which a 120 days Binding Notice is due from Buyer.

 

U.S. GDP-IPD means the most recent Gross Domestic
Product Implicit Price Deflator Index published by the US Department of
Commerce, Washington, DC, Bureau of Economic Analysis National income and
Wealth Division; “Survey of Current Business” through the end of the quarter
preceding the quarter in which delivery occurs.

 

If the U.S. GDP-IPD is discontinued or the basis of
its calculation is substantially modified, an index which can reasonably be
expected to produce approximately the same results shall be substituted by
mutual agreement of the parties.  If
Buyer and Seller are unable to agree within 60 days of the date upon which one
party receives notice from the other of its claims regarding the U.S. GDP-IPD,
the matter shall be resolved by binding arbitration according to 12.2.

 

The Purchase Price is inclusive of:

 

•                  Freight, insurance and other transportation charges to the point of
delivery at the conversion plant;

 

•                  All royalties, environmental control costs, taxes and other imposts
until arrival at the conversion plant;

 

•                  Weighing, sampling and assaying fees; and

 

•                  Book transfer fee charged to Seller by converter

 

•                  Any surcharges assessed by the converter with reference to that
converter’s specifications and book transfer fee.

 

Article VII – Taxes

 

7.1                       Seller shall be responsible for and bear any and all taxes, duties,
and imposts of any kind which are imposed on or with reference to the
Concentrates prior to and coincident with Book Transfer.

 

7.2                       Buyer shall be responsible for and bear any and all taxes, duties,
and imposts of any kind which are imposed on or with reference to the
Concentrates subsequent to Book Transfer.

 

7

 

Article VIII –
Invoicing and Payment

 

8.1                       In respect of each quantity of Concentrates delivered pursuant to Article 2
and Article 3, Seller shall promptly after delivery forward to Buyer an
invoice (in duplicate), together with the back-up data necessary to enable
Buyer to verify the price indicators and/or published statistics used to
calculate the Purchase Price, and Delivery Certificate.

 

8.2                       Seller shall issue an invoice for 100% of the sum arrived at by
multiplying the total quantities of U3O8 (expressed in
Pounds) contained in such delivery by the Purchase Price.

 

8.3                       Buyer shall pay to Seller the invoice value by telegraphic transfer
within thirty (30) days from the date when Buyer receives an invoice by fax
together with the applicable Book Transfer Certificate, provided that the
original invoice follows by mail.

 

8.4                       Any other amounts which either party is obliged to reimburse to the
other party pursuant to this Contract shall be paid by telegraphic transfer
within thirty (30) days after the date of receipt of invoice by fax, provided
that the original invoice follows by mail. 
Invoices not paid when due shall bear interest at the annual rate of
prime (as published in the Wall Street Journal) plus 2%.

 

8.5                       If any invoice due date is not a business day in the United States
of America, then such invoice shall become payable on the next business day both
in Hong Kong or United States of America.

 

Article IX – Force Majeure

 

9.1                      (a)        For the
purposes of this Contract, “Force Majeure” means an act, event or cause beyond
the reasonable control and without the wilful default or negligence of the
party concerned including, without limiting the generality of the foregoing;

 

(i)                          acts of God, perils of the sea, accidents of navigation, war,
sabotage, riot, insurrection, civil commotion, national emergency (whether in
fact or law), martial law, fire, flood, cyclone, earthquake, landslide,
explosion, strike, lock out, boycott, epidemic, quarantine, radiation or
radioactive contamination;

 

(ii)                       restriction, restraint, prohibition, requisition, expropriation,
direction or embargo by legislation, regulation, decree or other legally
enforceable order of any government or governmental or other competent
authority (including any court of competent jurisdiction); and

 

(iii)                    refusal, revocation
or suspension of any permit, licence, authorisation or certificate referred to
in Article XIII.

 

8

 

(b)        Force Majeure means:

 

(i)                          in the case of Seller – those Force Majeure acts, events or
circumstances which affect the conduct of the Seller’s U.S. mines, the
production of U308 thereat, or the delivery of U308
by Seller to Buyer.

 

(ii)                       In the case of Buyer – those Force Majeure acts, events or
circumstances which affect the taking delivery of U308
from Seller.

 

9.2                       If either party is prevented or delayed or anticipates that it will
be prevented or delayed in the performance of any of its obligations under this
Contract by Force Majeure, then subject to that party giving notice to the
other party in accordance with Section 9.3 and requesting a suspension of
its obligations, the performance of this Contract shall be suspended for any
actual period of any prevention or delay and the party or parties shall be
excused from the performance of the Contract as the case may be.

 

9.3                       A notice required by Section 9.2 shall be given as promptly as
practicable and in any case within thirty (30) days after the party giving the
notice first determines that any act, event or circumstance constitutes or may
constitute Force Majeure and the notice shall specify the following details:

 

(a)                        the matters
constituting or likely to constitute Force Majeure, together with evidence
thereof;

 

(b)                       an estimate of the
period within which the prevention or delay will continue;

 

(c)                        the action taken or
proposed to be taken to minimise or overcome the prevention or delay;

 

(d)                       the extent to which
delivery or acceptance of U308 will be affected.

 

9.4                      (a)        During the period of any prevention
or delay notified the party giving the notice shall promptly advise the other
party of any change in the nature of the Force Majeure.

 

(b)                       A party giving the notice under this Article may at any time
withdraw or cancel the notice and in such case any right of suspension of performance
shall be at an end from the date of cancellation of the notice.

 

(c)                        The party giving the notice shall endeavour to minimise the
prevention or delay resulting from the Force Majeure.

 

9.5                       If, because of Force Majeure, Seller’s ability to deliver Concentrates
hereunder is partially affected but not stopped entirely, the parties shall
discuss a fair basis upon which deliveries to Buyer will be reduced.

 

9.6                       If the disability resulting from Force Majeure lasts for more than
180 days from the date of notice in accordance with Section 9.3, the party
receiving the notice, may at any time prior to advice of cessation of that
disability (but not after the date of that advice) by notice in writing to the
other, cancel the whole or any part of any quantity of Concentrates due to be
delivered during the period of Force Majeure.

 

9.7                       If the disability resulting from Force Majeure lasts for more than
12 months from the date of notice in accordance with Section 9.3, either party,
may at any time prior to advice of cessation of that disability (but not after
the date of that advice) by notice in writing to the other, terminate this
Contract.

 

9

 

Article X – Non Compliance

 

10.1                 Except as provided in Article IX, if either party defaults in
the observance of performance of an obligation in a material way under this
Contract and such default continues for a period of ninety (90) days after the
other party has given written notice to the defaulting party specifying such default,
then such other party shall have the right to terminate this Contract by notice
in writing to the defaulting party.

 

10.2                 The measure of damages or compensation payable in the event of
breach of this Contract shall not in any circumstances (including circumstances
entitling termination of this Contract pursuant to this Article) extend to
consequential or indirect damages.

 

10.3                 If either party shall be adjudged bankrupt or insolvent under
similar proceedings (including without limitation proceedings for the
appointment of a trustee or receiver but excluding any proceedings for the
purpose of reconstruction only) then the other party shall have the right to
terminate this Contract by notice to such first mentioned party.

 

10.4                 Subject to the limitations set forth in Section 10.2, a party
terminating this Contract pursuant to this Article shall have the rights
and remedies provided under applicable law.

 

Article XI – Term and
Termination

 

11.1                 Subject to the necessary approval stated in Article XIII of this
Contract, this Contract shall enter into effect and shall remain in force
unless, agreed by both parties, until the end of year 2008.

 

11.2                 Notwithstanding Section 11.1;

 

(a)                        this Contract may, without any cost to or liability of the Buyer, be
terminated by the Buyer at its absolute discretion upon giving written notice
to the Seller if one or more of the following conditions precedent to the
ongoing effectiveness of this Agreement are not met:

 

(i)                                     the Seller cannot reasonably satisfy the Buyer on or before May 15,
2004, either by providing to the Buyer written evidence from its financiers that
is reasonably acceptable to the Buyer evidencing that it has received the
required financing from those financiers or other evidence reasonably
satisfactory to the Buyer, that the Seller has secured financing to begin and
complete plant construction, well field development and processing upgrades to
its facilities that, in the Buyer’s reasonable opinion, will allow the Seller
to fulfil all its obligations to the Buyer under this Contract; or

 

(ii)                                  the Buyer reasonably
concludes on or
before October 1, 2004 that the Seller will be
unable to maintain production of U3O8 at its production facilities
at levels to allow the Seller to fulfil all its obligations to the Buyer under
this Contract,

 

10

 

and in each case the Buyer must notify the Seller of its decision
to so terminate no later than ten (10) business days after the dates referred
to in (i) and (ii) above, respectively.

 

(b)                       this Contract is
subject to earlier termination in accordance with Section 9.7 or Article X;
and

 

(c)                        if needed for the
purposes of Article VI and Article IX, the term of this Contract
shall be extended to enable delivery of any delayed deliveries to be made and
for the quantity of U3O8 therein to be determined,
priced, invoiced and paid for in full.

 

11.3                 Termination of this Contract in accordance with Section 9.7 or Article X
by a party entitled to effect such termination, shall;

 

(a)                        take effect from
the date of receipt of the notice of termination by the other party;

 

(b)                       operate as a
discharge of performance of the unexecuted portion of this Contract, except
performance of any obligation outstanding at the date on which the notice of
termination takes effect;

 

(c)                        not abrogate or
prejudice any right (whether conferred by this Contract or existing by law or
in equity) of either party in respect of any antecedent breach by the other of
any obligations under this Contract.

 

Article XII – GOVERNING LAW AND
ARBITRATION

 

12.1        Governing Law

 

This Agreement
shall be governed by, construed, and enforced in accordance with, and its
validity shall be determined under, the laws of the State of New York, the United
States of America, without giving effect to any conflicts-of-law rules requiring
the application of the substantive law of any other jurisdiction, and it shall
be deemed to have been executed and performed in the State of New York.  The Parties hereby exclude the application of
the United Nations Convention on Contracts for the International Sale of Goods
(CISG) to this Agreement.  The Parties
expressly state their intention that the laws of Japan shall not, under any circumstances, apply in any way to the
interpretation of this Contract.  In the
event this Contract is translated and there exists any difference between the
foreign language version and this English version, this English version shall
prevail.

 

12.2 Arbitration

 

Any dispute, controversy or claim arising out of or relating to this
Agreement shall be finally resolved by arbitration in accordance with the rules of
the American Arbitration Association then obtaining.  Unless otherwise agreed in writing by the
Parties hereto, the arbitral panel shall consist of three (3) arbitrators,
one to be appointed by each

 

11

 

Party and the third to be appointed by the two
arbitrators appointed by the Parties.  In
the event that a Party fails to appoint an arbitrator within fifteen (15) days
after any such dispute, controversy or claim has been referred to arbitration
hereunder, then, in such event, the other Party may request the American
Arbitration Association to appoint an arbitrator for the Party failing to make
such appointment.  In the event that the
third arbitrator has not been appointed within thirty (30) days after any such
dispute, controversy or claim has been referred to arbitration hereunder, then,
in such event, either Party may request the American Arbitration Association to
appoint such third arbitrator.  The
arbitration proceedings, all documents submitted therein and the award of the
arbitral panel shall be in the English language, and all members of the
arbitral panel shall be fluent in English. 
The arbitration proceedings shall be held in New York, New York, the United
States of America.  The arbitral panel
shall apply the rules of procedure applicable to civil actions in the
courts of the state of New York; provided, however, that both Parties
shall be entitled to representation by counsel, to appear and present written
or oral evidence and argument and to cross-examine witnesses presented by the
other Party.  The arbitral award shall be
in writing and the arbitral panel shall provide written reason for its
award.  The award of the arbitral panel
shall be final and binding upon the Parties. 
The Parties waive any rights to appeal or to review such award by any
court or tribunal, and such award shall be final and binding. Each Party agrees
that any arbitral award or final judgment rendered against it in any action or
proceeding relating in any way to this Agreement shall be conclusive and may be
enforced, to the extent permitted by applicable law, in any court in the state
of New York, by suit on the arbitral award or judgment, a certified copy of
which arbitral award or judgment shall be conclusive evidence thereof, or by
such other means provided by applicable law. 
The Parties further agree to undertake to carry out without delay the
provisions of any arbitral award or order. 
A Party may disclose the contents of an award of the arbitral tribunal
only to affiliates, Governmental Authorities or other persons as required by
applicable law.

 

(a)                                  To the extent any Party has or may acquire
any immunity (sovereign or otherwise) from jurisdiction of any arbitral
tribunal or court in or in connection with any arbitration under this Agreement
or any proceeding, action, lawsuit or process (whether through service or
notice, attachment in aid of execution, execution or otherwise) pursuant to, in
aid of, arising out of, in confirmation or registration of, or to enforce, an
award of an arbitration proceeding under this Agreement, each Party, solely for
the purpose of such arbitration proceeding, action, lawsuit or process, hereby
irrevocably waives such immunity.  The

 

12

 

foregoing waiver and consent are intended to be effective to the
fullest extent now or hereafter permitted by the applicable law of any
jurisdiction where any suit, action or proceeding with respect to an
arbitration under this Agreement may be commenced, including the fullest extent
permitted under the Foreign Sovereign Immunities Act of 1976 of the United
States of America and are intended to be irrevocable and not subject to
withdrawal for purposes of such act.

 

Pending
the final decision of the arbitrator of a dispute hereunder, Buyer and Seller
shall diligently proceed with the performance of any portion of the Agreement
without prejudice to a final adjustment in accordance with the decision
rendered by the arbitral tribunal with respect to such dispute.

 

Article XIII –
Governmental Permits

 

13.1                 Deliveries of Concentrates hereunder are subject to the grant and
continuance in force of all necessary permits, licenses, authorisations and certificates.

 

Seller shall
at its own cost be responsible for obtaining and maintaining all permits,
certificates, licenses and authorisations necessary for performing its
obligations based on the Contract.

 

13.2                 Buyer shall at its own cost be responsible for obtaining and
maintaining all permits, certificates, licences and authorisations necessary
for performing its obligations based on the Contract.

 

13.3                 Each party shall at its own expense afford the other party all
reasonable assistance in applying for or obtaining any permit, licence,
authorisation or certificate necessary for the purposes of this Contract.

 

Article XIV –
Safeguards-Use of Concentrates

 

14.1                 Buyer and seller agree that the
Concentrates supplied hereunder, will be used only for peaceful purposes and
will be subject to the safeguard provisions of the agreements of the
governments involved for the cooperation in the field of nuclear
nonproliferation in effect as of the effective date of this Agreement, and as
the same may be subsequently amended.

 

Article XV – General
and Notices

 

15.1                 The terms and conditions of this Contract and all information
flowing to a party by reason of the operation hereof shall be kept and remain
confidential and each party undertakes that neither it nor its employees,
agents or representatives shall, without the prior written consent of the other
party, disclose such terms, conditions or

 

13

 

information to third persons unless disclosure relates to information already within
the public domain or is;

 

(a)                        required by
law or by the Government regulation;

 

(b)                       reasonably
necessary for submission to an arbitrator pursuant to Article XII or for
the purposes of any administrative or legal proceedings involving both parties;

 

(c)                        required by any
stock exchange on which the shares of such party may then be listed for
quotation;

 

(d)                       reasonably
necessary for financing purposes; or

 

(e)                        made to legal and
financial advisers or certified public accountants of either party who are bound
to treat any information disclosed to them as confidential.

 

15.2                 This Agreement shall not be assigned by
either Party without the prior written consent of the other Party, which
consent shall not be unreasonably withheld or delayed; provided that either
Party may, without such consent, assign this Agreement and its rights or
obligations hereunder to its subsidiary, affiliate, trust, or financial
institutions.  In no event shall any such
assignment be construed as a novation or discharge of the assigning party’s
obligations hereunder.  Except as so provided, any purported assignment hereof shall be
invalid.

 

15.3                 No amendment or modification of this Contract shall be binding on
the parties unless made in writing and signed or executed by or on behalf of both
parties.

 

15.4                 In any event Seller’s Parent Company shall guarantee all the necessary
performance of Seller described in this Contract.

 

15.5                (a)        All notices, notifications,
consents, advices, requests, demands, directions, instructions, reports and other
communications (in this Section 15.4 called “Communications”) required,
permitted or authorised to be made or given pursuant to this Contract shall be
made or given in writing and either personally served or sent airmail letter
(postage prepaid) or facsimile addressed as follows:

 

(i)                                     To Seller:

 

URI, Inc.

650 S.
Edmonds Lane

Suite 108

Lewisville,
TX 75067

 

Attention:
Paul K. Willmott

 

Facsimile:

 

(ii)                                  To Buyer:

 

ITOCHU
Corporation

5-1,
Kita-Aoyama 2-Chome

Minato-Ku,
Tokyo 107-8077

Japan

 

14

 

Attn: Nuclear Energy Department

Facsimile:  81-3-3497-8655

 

with copy to:         ITOCHU Petroleum Co., (Singapore) Pte. Ltd.

London Branch,

Austin Friars House

2-6 Austin Friars

London, United Kingdom EC2N 2HD

Attn: Hr. H. Maeda

Facsimile: 44-20-738-4019

 

(b)                       Either party may from time to time by notice in writing to the other
change its address for receipt of Communications.

 

(c)                        For the purposes of this Contract, Communications shall unless
otherwise agreed:

 

(i)                          be in the English
language;

 

(ii)                       be deemed to be
given only when actually received by the party to which they are addressed;

 

(iii)                    be promptly
acknowledged by the party to which they are addressed; and

 

(iv)                   be signed by an
authorised person of that party.

 

15

 

IN WITNESS WHEREOF the parties hereto have caused
these presents to be executed as attested to by their duly authorised signing
officers in that behalf as at the day and year on which the last party signed
below.

 

 

	
   

  	
  ITOCHU CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
  :

  	
  Masashi Nishimura

  
	
   

  	
  Title

  	
  :

  	
  General Manager, Nuclear Energy
  Department

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
  :

  	
   

  	
   

  
	
   

  	
  Place

  	
  :

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  URI, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
  :

  	
  Paul Willmott

  
	
   

  	
  Title

  	
  :

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
  :

  	
   

  	
   

  
	
   

  	
  Place

  	
  :

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Uranium Resources, Inc. (Seller’s
  Parent Company)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name

  	
  :

  	
  Paul Willmott

  
	
   

  	
  Title

  	
  :

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
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  :

  	
   

  	
   

  

 

16EXHIBIT
10.29

 

August 19, 2004

 

Amendment No. 1

 

To

 

The Uranium Supply Contract dated January 13, 2004 between ITOCHU
Corporation and URI, Inc.

 

Pursuant to ITOCHU Corporation (Buyer)’s revised
proposal dated August 6, 2004 and URI, Inc. (Seller)’s acceptance dated August
18, 2004, (copies attached) the parties hereby agree to amend the above
referenced Contract as follows:

 

Buyer and Seller agree to
advance a portion of the 2005 Annual Quantity as set forth under Article 2.1
(herein designated by Buyer to be a total of 345,000 pounds U3O8) to 2004
accordingly:

 

1.              2004 Delivery
Schedule and Quantity:

 

	
  October, 2004:

  	
   

  	
  66,000 pounds U3O8, +/-
  15

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  November, 2004

  	
   

  	
  66,000 pounds U3O8, +/-
  15

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  December, 2004

  	
   

  	
  99,000 pounds U3O8, +/-
  15

  	
  %

  
	
  Total:

  	
   

  	
  231,000 pounds U3O8,
  +/- 15

  	
  %

  

 

2.              Remaining Annual
Quantity:

 

That portion of the 2005
Annual Quantity not advanced pursuant to 1 above (345,000 pounds U3O8 less
231,000 pounds U3O8 [+/- 15%]) shall be delivered to Buyer no later than March
31, 2005.

 

3.              Timing of Deliveries
and Quantity Flexibility

 

The timing of the
deliveries and the quantity flexibility (+/- 15%) within the periods specified
in items 2 and 3 above will be at the Sellers discretion.  The Seller agrees to notify the Buyer of the
timing and quantity of each such delivery no later than seven (7) days prior to
the date of each delivery.

 

4.              Delivery Location:

 

Seller shall deliver the
U3O8 quantities set forth under items 1 and 2 above to Buyer’s account at
ConverDyn.

 

5.              Price:

 

A.            For all U3O8
delivered to Buyer under item 1 above, the price paid to       Seller shall be US$13.95 per pound U3O8,
fixed, and

 

B.            For all U3O8
delivered to Buyer under item 2 above, the price paid to Seller shall be
US$14.01 per pound U3O8, fixed.

 

 

6.              Payment:

 

Payment to Seller shall
be made by Buyer within 3 business days of each Delivery, subject to Buyer’s
receipt of ConverDyn’s Delivery confirmation notice and Seller’s invoice.

 

 

All other terms and
conditions of the above referenced Contract remain unchanged. Upon execution,
this Amendment shall be effective as of the date first written above.

 

	
  Agreed to by Buyer

  	
   

  	
  Agreed to by Seller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
  Name

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
  Title

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