Document:

Exhibit 10.2 Amended and Restated Option and JV Agreement

    
      

    

    

    VIA
      FAX (604) 689-1817

    

    

    

    April
      15,
      2006

    

    Uranium
      Power Corp.

    525-999
      West Hastings Street

    Vancouver,
      British Columbia V6C 2W2

    Attention:
      Rahoul Sharan, President

    

    SUBJECT: AMENDED
      AND RESTATED OPTION AND JOINT VENTURE AGREEMENT - SAHARA MINE PROPERTY,

    EMERY
      COUNTY, UTAH

    

    Gentlemen:
      

    

    This
      Amended and Restated Option and Joint Venture Agreement (this “Amended and
      Restated Agreement”) sets forth the terms and conditions of an option and joint
      venture (“Venture”) by and between URANIUM GROUP LLC, a Utah limited liability
      company of which Scott J. Hill is the Manager, 3975 West 8010 South, West
      Jordan, Utah, USA (”Uranium Group”) and URANIUM POWER CORP., a British Columbia
      corporation (“UPC”). This Amended and Restated Agreement incorporates the
      amendments agreed to between Uranium Group and UPC with respect to the Option
      and Joint Venture Agreement dated as of August 25, 2005 (the “Effective Date”)
      between Uranium Group and UPC (the “Agreement”) and restates the Agreement in
      its entirety. This Amended and Restated Agreement relates to those certain
      rights and interests owned or controlled by Uranium Group, more specifically
      described in Exhibit “A” hereto (the “Property”). Uranium Group or UPC are
      sometimes hereinafter individually referred to as “Party” or collectively as
“Parties.” The interests of Uranium Group or UPC with respect to the Property
      shall individually hereinafter be referred to as a “Participating Interest” or
      collectively “Participating Interests.” As used in this Amended and Restated
      Agreement: (1) the term “Affiliate” means any person, partnership, joint
      venture, corporation or other form of enterprise which directly or indirectly
      controls, is controlled by, or is under common control with, a Party, with
      “control” meaning the possession, directly or indirectly, of the power to direct
      or cause direction of management and policies through ownership of voting
      securities, contract, voting trust or otherwise; (2) the term “Manager” means
      the entity appointed pursuant to Section 7.4.1; and (3) the following terms
      have
      the meanings respectively defined in the following referenced Sections:
“Additional Participating Interest” - Section 3.4; “Amended Effective Date” -
      Section 9.23; “Cash Call” - Section 8.3; “Earn-In-“ - Section 3.1; “Force
      Majeure” - Section 9.6; “Management Fee” - Section 9.17; “Minimum Exploration
      Expenditures” - Section 3.1(b); ; “Initial Option” - Section 3.1; “Additional
      Option” - Section 3.4; “Notice Date” - Section 3.4; “Products” - Section 9.1;
“Program and Budget” - Section 8.1; and “Receiving Party” - Section
      9.5.2.

    
      
         

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    Subject
      to any approval required as provided in Section 9.23, this Amended and Restated
      Agreement, when signed by both Parties, shall constitute a legally binding
      agreement between Uranium Group and UPC, and shall be effective on the “Amended
      Effective Date,” as defined in such Section. 

    

    TERMS

    

    
      	1.  	
              TITLE
                MATTERS

            

    

    

    
      	1.1  	
              Uranium
                Group’s Representations and Warranties.
                Uranium Group makes the following representations and warranties:
                

            

    

    

    1.1.1 With
      respect to unpatented mining claims included in the Property, except as provided
      in Exhibit A, and subject to the paramount title of the United States, as of
      the
      Effective Date: (i) the unpatented mining claims were properly laid out and
      monumented; (ii) all required location work and validation work was properly
      performed; (iii) location notices and certificates were properly recorded and
      filed with appropriate governmental agencies; (iv) all assessment work required
      to hold the unpatented mining claims has been performed in a manner consistent
      with that required through the assessment year ending September 1, 2005; (v)
      all
      payments in lieu of assessment work pursuant to 106 Stat. 1374 (1992) and 107
      Stat. 312 (1993) and necessary to hold the unpatented mining claims through
      the
      assessment year ending September 1, 2005 have been made; (vi) all affidavits
      of
      assessment work and other filings required to maintain the unpatented mining
      claims in good standing have been properly and timely recorded or filed with
      appropriate governmental agencies; and (vi) the unpatented mining claims are
      free and clear of defects, liens and encumbrances arising by, through or under
      Uranium Group. 

    

    1.1.2  As
      of the
      Effective Date, the underlying leases with respect to that portion of the
“Property” which has been leased as defined in Exhibit “A” are in good
      standing.

    

    1.1.3  That
      to
      Uranium Group’s knowledge, there are no pending or threatened actions, suits,
      claims or proceedings with respect to the Property.

    

    1.1.4  Uranium
      Group has the full right, power and capacity to enter into this Amended and
      Restated Agreement upon the terms and conditions herein contained.

     

    1.1.5  That
      it
      is a company duly organized and in good standing in its jurisdiction of
      organization and that it is qualified to do business and is in good standing
      in
      those jurisdictions where necessary in order to carry out the purposes of this
      Amended and Restated Agreement

     

     

    
      
        
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    1.1.6  That
      it
      will indemnify, defend and hold harmless UPC, its shareholders, directors,
      officers and employees of and from any liabilities arising as a direct result
      of
      Uranium Group’s activities on the Property prior to the Effective
      Date.

    

    1.2 UPC’s
      Representations and Warranties.
      UPC
      represents and warrants that UPC has the full right, power and capacity to
      enter
      into this Amended and Restated Agreement upon the terms and conditions herein
      contained.

    

    1.2.1
      That it is a corporation duly incorporated and in good standing in its
      jurisdiction of incorporation and that it will incorporate a US subsidiary
      with
      the intent that this Amended and Restated Agreement be assigned to a US
      subsidiary which US subsidiary will be qualified to do business in the State
      of
      Utah and the United States of America where necessary in order to carry out
      the
      purposes of this Amended and Restated Agreement

    

    1.2.2
      Subject to the provisions of this Amended and Restated Agreement, UPC assumes
      responsibility for all operations on the Properties performed by it or its
      Affiliates on or after the Effective Date and specifically shall indemnify,
      defend and hold harmless Uranium Group and its Manager and Members for and
      on
      account of any liability that may be asserted against the same as a result
      of
      any action, suit, demand or proceeding commenced or asserted by any person
      or
      entity (including without limitation any governmental entity), arising out
      of or
      related to such operations including without limitation any violation of any
      environmental law or any law related to human health or safety. UPC further
      agrees to maintain reasonable levels of insurance, commensurate with industry
      practice, with respect to these activities and to include Uranium Group as
      an
      additional insured on the general liability and other insurance policies it
      maintains with respect to the Properties to provide insurance coverage for
      claims that occur while Uranium Group has a working interest during the term
      of
      this Amended and Restated Agreement, even if the claim is brought after the
      Uranium Group no longer has a working interest. 

    

    1.2.3
      That is will perform all obligations hereunder in a good and minerlike fashion
      and that it will make all payments and do such other things as are necessary
      to
      maintain all mining claims, leases and other rights constituting the Property
      and to keep the Property free and clear of liens and encumbrances during the
      Earn-In Period and, following completion of the Earn-In. 

    

    2. TERM

    

    The
      term
      of the Venture shall be twenty (20) years from the Effective Date and for so
      long thereafter as Products are being produced from the Property or the Property
      is being reclaimed or remediated, unless the Venture is earlier terminated
      as
      provided herein.

    

    
      
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    3. EARN-IN

    

    3.1  Initial
      Option.
      Uranium
      Group hereby grants to UPC the exclusive and irrevocable option (the “Initial
      Option”), exercisable at UPC’s sole discretion, to earn-in and vest with a
      seventy percent (70%) undivided Participating Interest in the Venture and the
      Property (the “Initial Participating Interest”). In order to maintain the
      Initial Option, UPC must, on a timely basis, (a) make to Uranium Group the
      payments set out in Section 3.1.1 (the “Payments”), (b) perform or incur the
      exploration expenditures set out in Section 3.1.2 (the “Exploration
      Expenditures”), (c) deliver to Uranium Group shares in UPC as set out in Section
      3.1.3 (the “Share Deliveries”), and (d) deliver to Uranium Group a document with
      respect to the Property that satisfies the requirements of Canadian National
      Instrument 43-1-1 “Standards of Disclosure of Mineral Projects” (collectively,
      the “Initial Earn-In”). UPC may make the payments, incur the expenditures or
      deliver the shares on an accelerated basis. 

    

    3.1.1 The
      Payments due annually to the Uranium Group are as follows:

    

    
      	
              Due
                Date

            	
              Annual
                Payment Amount

            
	 	 
	
              December
                31, 2006

            	
              US$146,250

            
	
              December
                31, 2007

            	
              US$146,250

            
	
              December
                31, 2008

            	
              US$146,250

            
	
              December
                31, 2009

            	
              US$146,250

            
	 	 
	
              Total
                Payments

            	
              US$585,000

            

    

    

    3.1.2 The
      annual amount of Exploration Expenditures required to be performed or incurred
      by UPC is as follows; provided that any amount in excess of the required
      cumulative amount in any year will be carried over to the obligation for the
      following year:

    

    
      	
              Due
                Date

            	
              Cumulative
                Expenditure Amount

            
	 	 
	
              December
                31, 2006

            	
              US$341,250

            
	
              December
                31, 2007

            	
              US$682,500

            
	
              December
                31, 2008

            	
              US$1,023,750

            
	
              December
                31, 2009

            	
              US$1,365,000

            
	 	 
	
              Total
                Expenditures

            	
              US$1,365,000

            

    

    

    
      
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    3.1.3 The
      Share
      Deliveries to be made annually to the Uranium Group are as follows:

    

    
      	
              Due
                Date

            	
              Annual
                Share Issuance Amount

            
	 	 
	
              December
                31, 2006

            	
              50,000
                shares

            
	
              December
                31, 2007

            	
              50,000
                shares

            
	
              December
                31, 2008

            	
              50,000
                shares

            
	
              December
                31, 2009

            	
              50,000
                shares

            
	 	 
	
              Total
                Shares

            	
              200,000
                shares

            

    

    

    3.2 Deceleration
      of the Earn-In.
      In the
      event the long term price of uranium oxide (as reported by Ux Consulting Company
      LLC, or a reliable replacement source if such company discontinues reporting)
      is
      below US$20.00 for four consecutive weeks in any calendar year, the obligation
      of UPC to make the payments, perform or incur exploration expenditures and
      to
      deliver shares will be reduced to one-half of the amount that would otherwise
      have been required in that calendar year and the balance of the obligation
      will
      be deferred to the year ending December 31, 2010. In the event that the long
      term price of uranium oxide continues below, or having recovered again falls
      below, US$20 in one or more subsequent years, the balance of the obligation
      will
      be deferred to the next year or years, as appropriate, after 2010. 

    

    3.3 Exercise
      of the Initial Option.
      The
      Initial Option may be exercised by UPC at any time after all of the obligations
      of UPC set out in Sections 3.1.1, 3.1.2 and 3.1.3 have been made, incurred
      and
      delivered on a timely basis, but no later than January 30, 2010 unless the
      provisions of Section 3.2 have been invoked (in which case such date will be
      extended to 30 days following the date required for completion of such
      obligations under Section 3.2). The Initial Option shall be exercised by
      delivering to Uranium Group a notice that UPC is exercising the Initial Option
      with respect to all or any portion of the Property. If the Option is being
      exercised with respect to less than all of the Property, a clear identification
      of the portion with respect to which the Initial Option is being exercised
      shall
      be included in the notice. In addition, at the time UPC exercises the Initial
      Option, it shall notify Uranium Group of its intent to maintain the Additional
      Option by undertaking the obligations set out in Section 3.4. 

    

    3.4 Additional
      Option.
      Uranium
      Group also hereby grants to UPC the exclusive and irrevocable option (the
“Additional Option”), exercisable at UPC’s sole discretion, to earn-in and vest
      with an additional fifteen percent (15%) undivided Participating Interest in
      the
      Venture and the Property (except for any portion of the Property for which
      the
      Initial Option was not exercised) (the “Additional Participating Interest”). In
      order to maintain the Additional Option, (a) UPC must have exercised the Initial
      Option in a timely manner, (b) notified Uranium Group within 30 days of the
      exercise of the Initial Option of its intent to maintain the Additional Option
      (the “Notice Date”), and (c) UPC must, on a timely basis, (i) perform or incur
      an additional US$700,000 in exploration and/or development expenditures within
      360 days of the Notice Date, (ii) pay to Uranium

    
      
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    Group
      US$300,000 within 30 days of the Notice Date, and (iii) deliver to Uranium
      Group
      400,000 shares of UPC stock within 30 days of the Notice Date (the “Additional
      Earn-In”).

    

    3.5 Exercise
      of the Additional Option.
      The
      Additional Option may be exercised by UPC at any time after all of the
      obligations of UPC set out in Section 3.4 have been performed, made, incurred
      and delivered as required by Section 3.4, but no later than 390 days after
      the
      Notice Date. The Additional Option shall be exercised by delivering to Uranium
      Group a notice that UPC is exercising the Additional Option, which must be
      exercised if at all with respect to all of the Property except for any portion
      of the Property for which the Initial Option was not exercised. 

    

    4. CONTRIBUTIONS.

    

    4.1 Initial
      Contribution.
      

    

    4.1.1 
      Upon
      completion of the Initial Earn-In and exercise of the Initial Option, UPC’s
      Initial Contribution shall be deemed to be US$1,950,000 and the Uranium Group’s
      Initial Contribution shall be deemed to be US$835,714 so that the total deemed
      Initial Contribution of both Parties to the Venture is US$2,785,714

    

    4.1.2 
      Upon
      completion of the Additional Earn-In and exercise of the Additional Option,
      UPC’s Initial Contribution shall be deemed to be US$2,950,000 and the Uranium
      Group’s Initial Contribution shall be deemed to be US$520,588 so that the total
      deemed Initial Contribution of both Parties to the Venture is
      US$3,470,588

    

    4.2 Funding
      During the Interim Period.
      If UPC
      exercises the Initial Option, but does not notify Uranium Group of its intent
      to
      maintain the Additional Option as set out in Section 3.4(b) (or notifies Uranium
      Group that it does not intend to maintain the Additional Option), the Parties
      shall fund operations as provided in Section 4.3. If UPC exercises the Initial
      Option, and notifies Uranium Group of its intent to maintain the Additional
      Option as set out in Section 3.4(b), until such time as UPC notifies Uranium
      Group that it does not intend to maintain the Additional Option by continuing
      to
      undertake the obligations set out in Section 3.4 or UPC exercises the Additional
      Option, UPC shall fund 85% of all Programs and Budgets and Uranium Group shall
      fund 15% of all Programs and Budgets, subject to the right of Uranium Group
      to
      voluntarily reduce its Participating Interest as provided in Section
      5.2.

    

    4.3 Regular
      Contributions.
      Prior
      to completion of Initial Earn-In, UPC shall be solely responsible for funding
      all Programs and Budgets and for maintaining the Property. Subsequent to the
      Initial Earn-In, except as provided in Section 4.2, the Parties shall be
      obligated to contribute funds to Programs and Budgets in proportion to their
      respective Participating Interests. UPC or Uranium Group may, by notice within
      fifteen (15) days after the final vote approving a Program and Budget, elect
      to
      limit its contribution to a Program and Budget to some lesser amount than its
      respective Participating Interest or

    
      
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    not
      at
      all, in which case the Participating Interest of the non-contributing Party
      shall be diluted as prescribed in Section 5.2; provided, however, that with
      respect to a Program and Budget that first calls for commencement of development
      of a mine on the Property, Uranium Group shall have ninety (90) days after
      the
      final vote approving such Program and Budget in which to make its election.
      If a
      Party elects to limit its contribution pursuant to this Section, the other
      Party
      may contribute the non-contributed amount in whole or in part for its own
      behalf.

    

    4.4 Revolving
      Loan.
      UPC
      agrees to make available US$1,000,000 to Uranium Group a revolving loan that
      Uranium Group can draw upon for up to three years following completion of the
      Initial Earn-In to fund its obligations under this Amended and Restated
      Agreement. The outstanding balance of any amounts borrowed from such fund shall
      bear simple interest of 8.0% per annum from the date borrowed until repaid,
      whether during or after such three year period. Uranium Group may repay any
      amounts borrowed from any source but must allocate 90.0% of any amounts
      distributed to it from sale of products produced from the Properties.

    

    5. PARTICIPATING
      INTERESTS.

    

    5.1 Initial
      Participating Interests.
      

    

    5.1.1 
      Upon
      completion of Initial Earn-In and exercise of the Initial Option, the Parties
      shall have the following Initial Participating Interests: UPC - 70% and Uranium
      Group - 30%; provided that these respective percentages may subsequently be
      adjusted pursuant to Section 5.2.

    

    5.1.2 
      Upon
      completion of Additional Earn-In and exercise of the Additional Option, the
      Parties shall have the following Initial Participating Interests: UPC - 85%
      and
      Uranium Group - 15%; provided that these respective percentages may subsequently
      be adjusted pursuant to Section 5.2.

    

    5.2  Voluntary
      Reduction in Participation.
      If a
      Party elects to contribute to a Program and Budget some lesser amount than
      its
      respective Participating Interest, or not at all pursuant to Section 4.2, the
      respective Participating Interests of the Parties shall be recalculated at
      the
      time of election by dividing; (i) the sum of (a) the deemed value of the Party’s
      Initial Contribution under Section 4.1, (b) the total of all of the Party’s
      Regular Contributions under Section 4.2, and (c) the amount, if any, the Party
      elects to contribute to a Program and Budget; by (ii) the sum of (a), (b) and
      (c) above for both Parties, and then multiplying the result by one hundred.
      Notwithstanding the foregoing, if a Party makes such election and the Manager
      does not spend at least 85% of the amount budgeted in such Program and Budget,
      the electing Party may pay in its proportionate share of the amount actually
      spent and have its interest restored.

    

    5.3  Default
      in Making Contributions.
      Both of
      the Parties hereby grant to the other a lien on all its rights upon any and
      all
      mineral production which may be obtained from the

    
      
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    Property
      to secure its performance of any obligation hereunder. Each Party agrees to
      execute in due course and from time to time any and all other additional
      documents which the other Party may require as evidence of such lien. If a
      Party
      defaults in making a contribution or Cash Call required by a Program and Budget,
      the non-defaulting Party may elect to have the defaulting Party’s Participating
      Interest reduced according to the formula set forth in Section 5.2.

    

    5.4 Elimination
      of Minority Interest.
      Upon
      the reduction of a Party’s Participating Interest to ten percent (10%) or less
      pursuant to Section 5.2 or 5.3, the Party shall be deemed to have withdrawn
      from
      the Venture and shall be deemed to have elected to permanently convert its
      Participating Interest to a 10% Net Profits Interest or a 2% Gross Income
      Royalty as detailed in Exhibit “C”. Upon such election, the withdrawing Party
      shall convey its Participating Interest to the non-withdrawing Party and
      thereafter the withdrawing Party shall have no right, title or interest under
      this Amended and Restated Agreement except for the right to receive the Net
      Profits Interest or Gross Income Royalty in accordance with the terms of this
      Section and Exhibit “C”. A determination as to whether the withdrawing Party
      elects to receive a 2% Gross Income Royalty or a 10% Net Profits Interest shall
      be made initially within thirty (30) days of the date of withdrawal. Each year
      thereafter, the withdrawing Party shall notify the non-withdrawing Party no
      later than December 1 of such year if it elects to receive the Gross Income
      Royalty or the Net Profits Interest for the following year, which election
      will
      be binding for the following year. The non-withdrawing Party shall provide
      to
      the withdrawing Party a current calculation of both the Gross Income Royalty
      and
      the Net Profits Interest within 30 days of the end of each calendar quarter.
      In
      the event no such election is made, the withdrawing Party shall be deemed to
      have made the then current election. 

    

    5.5
      Continuing
      Liabilities Upon Adjustments of Participating Interests.
      Any
      reduction or elimination of a Party’s Participating Interest shall not relieve
      such Party of its share of any liability, whether it accrues before or after
      such reduction, arising out of operations conducted hereunder prior to such
      reduction or elimination.

    

    6. HOLDING
      OF TITLE

    

    6.1  Prior
      to Earn-In.
      Until
      such time as UPC has completed the Initial Earn-In, title to the Property shall
      be held in Uranium Group’s name, subject to the terms and provisions of this
      Amended and Restated Agreement.

    

    6.2  Subsequent
      to Earn-In.
      At such
      time as UPC has completed the Initial Earn-In or the Additional Earn-In, or
      any
      time thereafter, Uranium Group shall, upon UPC’s request, by instruments
      acceptable to counsel for the Parties, convey title to UPC’s proportionate share
      of the Property to UPC and each Party shall hold its interest as tenants in
      common for the benefit of the Venture.

    
      
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    7. MANAGEMENT

    

    7.1 Management
      Committee.
      A
      management committee shall be formed consisting of two (2) designated
      representatives of UPC and one (1) designated representative of Uranium Group.
      The votes of each Party shall be in proportion to its Participating Interest,
      and except as otherwise provided, approval of Parties holding in excess of
      sixty-six percent (66%) shall be required in order to make a decision or approve
      a program and budget, provided, however, when voting on proposed programs and
      budgets, the Manager shall first consider the legitimate concerns of the
      minority party. For purposes of voting and this Section 7.1, prior to Initial
      Earn-In it shall be deemed that UPC holds a fifty-one percent (51%)
      Participating Interest and Uranium Group holds a forty-nine percent (49%)
      Participating Interest. 

    

    7.2 Unanimous
      Requirement.
      Before
      completion of the Earn-In, the unanimous vote of the Parties shall be required
      in order to make a decision or approve the following matters; (i) the creation
      of any encumbrance on the Property or the creation of any indebtedness that
      is
      an obligation of the Venture or that may create a lien on the Property, (ii)
      the
      transfer or disposition of any part of the Property or (iii) commencement of
      any
      litigation in the name of Uranium Group or the Venture. Following completion
      of
      the Earn-In, the unanimous vote of the Parties shall be required (i) to encumber
      the interests of all Parties in the Property or the Venture, (ii) for the
      transfer or disposition of any single major physical asset which would be
      fundamental to the operation of a mine on the Property having a fair market
      value of greater than One Million Dollars (US$1,000,000), (iii) for the
      commencement of the liquidation of the Venture, or (iv) for modification of
      this
      Amended and Restated Agreement.

    

    7.4 Manager

    

    7.4.1 Appointment.
      The
      Parties hereby appoint UPC or its designee as the Manager with overall
      management responsibility for operations conducted prior to Earn-In and pursuant
      to the Venture. UPC shall be the Manager so long as UPC maintains a
      Participating Interest equal to or greater than that of the other Party, unless
      UPC fails to perform a material obligation required under this Amended and
      Restated Agreement. At such time as UPC’s Participating Interest is not equal to
      or greater than that of the other Party, the Party having the larger
      Participating Interest shall be entitled to name a new Manager. Uranium Group
      hereby grants to UPC, as the Manager, the exclusive right to enjoy all of
      Uranium Group’s rights in the Property during the period of the
      Option.

    

    7.4.2 Reports
      and Statements.
      The
      Manager shall distribute detailed statements, work progress reports and other
      data obtained pursuant to all operations hereunder to the other Party on a
      quarterly basis (by the 20th
      day
      following each calendar quarter) and additionally as reasonably requested by
      the
      non-manager.

     

     

    
      
        
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    7.4.3  General
      Information.
      The
      Manager shall keep the minority Participating Interest holder informed of all
      Venture business and shall consider its legitimate concerns and requests.

    

    
      	
              8.

            	
              PROGRAMS
                AND BUDGETS

            

    

    

    8.1 Proposed
      Programs and Budgets

    

    8.1.1 Proposed
      programs and budgets shall be prepared by the Manager for six (6) months or
      any
      longer period not to exceed a period of twelve (12) months. At least forty-five
      (45) days prior to the expiration of a Program and Budget, the Manager shall
      prepare and submit to the other Party a proposed program and budget for the
      succeeding period. Such proposed program and budget shall be in a form and
      degree of detail sufficient to allow the non-manager to make a reasonably
      informed determination concerning participation therein. Within thirty (30)
      days
      after submission of a proposed program and budget, the Management Committee
      shall approve or disapprove of the proposed program and budget. A program and
      budget so approved is herein referred to as a “Program and Budget”.

    

    8.1.2 Subsequent
      to Earn-In, any Party may propose a Program and Budget to the management
      committee calling for a designated portion of the Property to be explored,
      developed, mined or further evaluated for commercial production. The Party
      so
      proposing shall vote in favor of the proposed Program and Budget and the
      provisions of Section 7.1 shall apply.

    

    8.2 Budget
      Overruns; Program Changes.
      The
      Manager shall immediately notify the management committee of any material
      departure from a Program and Budget. The Party or Parties responsible for
      funding a Program and Budget shall be responsible, in proportion to their
      respective Participating Interests, for emergency expenditures made during
      the
      term of the Program and Budget and in good faith deemed necessary by the Manager
      to protect the Property or the Venture or its assets. Except in the case of
      such
      emergency or management committee authorization, if the Manager exceeds a Budget
      by more than ten percent (10%), then the excess over ten percent (10%) shall
      be
      for the sole account of the Manager and such excess shall not be included in
      the
      calculations of the Participating Interests. Budget overruns of ten percent
      (10%) or less shall be borne by the Parties in proportion to their respective
      Participating Interests as of the time the overrun occurs.

    

    8.3 Cash
      Calls.
      On the
      basis of a Program and Budget, the Manager may submit to the other Party prior
      to the last day of each month, a billing for estimated cash requirements for
      the
      next three (3) months (“Cash Call”). Within fifteen (15) days after receipt of
      each Cash Call, each Party shall advance to the Manager its proportionate share
      of the estimated amount, net of any amount remaining from previous Cash Calls
      made in prior months. The Manager may maintain a cash balance approximately
      equal to the rate

    
      
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    of
      disbursement for up to three (3) months in a segregated, interest bearing
      account established solely for the benefit of the Venture.

    

    
      	
              9.

            	
              MISCELLANEOUS
                PROVISIONS

            

    

    

    9.1 Processing
      of Ore and Sale of Products.
      The
      Manager shall use their best efforts to arrange for all ores produced from
      the
      Property to be processed at a mill or other facility to produce concentrates
      containing uranium oxide and any other commercially valuable minerals contained
      in such ores (“Products”). The Manager shall sell Products on behalf of the
      Venture on an arms’ length basis and deliver all Revenues received from the sale
      of such Products to the Parties in proportion to their Participating Interests
      on a monthly basis. For purposes of this provision, “Revenues” shall mean the
      total amounts received by the Manager from the sale of Products produced from
      the Property at the point of sale, less all selling costs, provided such sales
      are arm’s length transactions, and provided further that sales to Affiliates of
      the Manager are valued at the fair market value of the Products sold.

    

    9.2 Relationship
      of the Parties.
      The
      rights, duties, and obligations of the Parties hereunder shall be several and
      not joint or collective. Each Party shall be responsible only for its
      obligations as herein set out and shall be liable only for its share of the
      costs and expenses as provided herein. It is expressly agreed that it is not
      the
      purpose or intent of this Amended and Restated Agreement, nor shall the same
      be
      construed as creating any mining, commercial or other partnership. Except as
      provided in Section 9.1, this Amended and Restated Agreement shall not be
      construed to provide for any joint marketing of ores, concentrates, or other
      substances produced from the Property nor to create any fiduciary relationship
      between the Parties.

    

    9.3 Dispute
      Resolution.
      Any
      action for any claim arising under or in connection with this Amended and
      Restated Agreement shall be brought and determined in a state or federal court
      located in Salt Lake City, Utah.

    

    9.4 Transfer
      of Interest.
       Any
      Party
      may freely transfer its interest in the Property, this Amended and Restated
      Agreement or the Venture as long as such transferee has the ability to perform
      and agrees in writing to be bound by the terms and conditions of this Amended
      and Restated Agreement. 

    

    9.5 Termination.
      This
      Amended and Restated Agreement shall terminate on the first occurrence of any
      of
      the following events:

    

    9.5.1 Withdrawal
      by UPC prior to completion of the Initial Earn-In, which shall occur if (1)
      UPC
      gives thirty (30) days prior written notice of such withdrawal; or (2) UPC
      fails
      to satisfy the requirements of the Initial Earn-In in the manner set forth
      in
      Section 3.1; or (3) the Initial Earn-In is not completed within the period
      specified in Section 3.1. Upon such withdrawal, UPC shall have no further right,
      title or interest in the Property and the Venture, but shall remain liable
      (a)
      for any

    
      
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    obligations
      arising out of operations conducted prior to its withdrawal, and (b) for
      governmental holding, lease rental payments and claim maintenance fees or
      payments to third parties required to maintain the Property that accrue within
      30 days following withdrawal, except that, if UPC withdraws after July 1 of
      any
      year it shall be responsible for the claim maintenance fees due on September
      1
      of that year, and (c) UPC shall be required to pay to the Uranium Group any
      portion of the initial US$341,250 work commitment not actually expended on
      or
      for the benefit of the Property. Upon withdrawal, UPC shall execute and deliver
      to Uranium Group a release and any other documents necessary to terminate its
      interest in the Property and the Venture, free and clear of all liens and
      encumbrances created by, through or under UPC, along with all data with respect
      to the Property provided to UPC by the Uranium Group or otherwise developed
      or
      acquired by UPC prior to withdrawal. UPC shall deliver to Uranium Group all
      factual data generated by UPC from the Property during the term of this Amended
      and Restated Agreement.

    

    9.5.2 Withdrawal
      by either Party following the Initial Earn-In, in which case the withdrawing
      Party shall have no further right, title or interest in the Venture (except
      for
      a royalty described in Section 5.4) and shall transfer at no cost to the other
      Party all of its Participating Interest, but shall remain liable for any
      obligations arising out of operations conducted prior to its
      withdrawal.

    

    9.5.3 By
      mutual
      agreement of the Parties.

    

    9.6 Force
      Majeure.
      When an
      event of Force Majeure occurs, a Party shall promptly notify the other Party
      describing the nature of the event, and the effects thereof. If the Party’s
      compliance with its obligations under this Amended and Restated Agreement is
      prevented by Force Majeure, the Party’s obligations shall be suspended to the
      extent and for the period that performance is prevented by Force Majeure “Force
      Majeure” means any cause beyond a Party’s reasonable control, including, without
      limitations, the inability or unusual delay in obtaining any license, permit
      or
      other authorization that may be required to conduct operations; unusual climatic
      conditions; war, civil insurrection, labor disputes, acts of government, surface
      owner disputes, lack of availability of contractors or equipment at reasonable
      prices, or like causes not subject to a Party’s control.

    

    9.7 Data.
      During
      the term hereof and during the Venture, a hard copy or suitable electronic
      file
      of all data and information obtained by or in the possession of either Party
      with respect to the Property shall be made available to the other Party upon
      its
      request. Data shall include information related to decisions made by the Manager
      with respect to the Venture and all invoices and other accounting records
      necessary to substantiate UPC’s compliance with the Earn-In obligations set out
      above and all financial records maintained by the Manager with respect to
      Programs and Budgets adopted by the Venture. 

    

    
      
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    9.8 Inspection.
      The
      non-managers’ agents, duly authorized in writing, may enter upon the ground
      covered by the Property to inspect the workings thereon at their sole risk
      and
      expense and at such times and in such a manner as shall not unreasonably hinder
      or interrupt the operation and activities hereunder. Personnel involved in
      any
      such inspections shall comply with all applicable OSHA/MSHA requirements and
      all
      safety rules adopted by the Manager.

    

    9.9 Confidentiality/Releases.
      All
      data and information coming into the possession of the Parties pursuant to
      this
      Amended and Restated Agreement shall be deemed confidential and shall be kept
      strictly confidential by the Parties except as specified in Section 9.11 or
      required by law or regulation. 

    

    9.10 No
      Area of Interest.
      There
      shall be no “area of interest” outside of the exterior boundaries of the
      Property and the area immediately surrounding the Property as of the Effective
      Date as such area is described in Exhibit B; however, during the term hereof,
      any interest or right to acquire any interest in whole or in part within the
      exterior boundaries of the Property and immediately surrounding area as
      described in Exhibit B that is acquired by or on behalf of that Party or any
      Affiliate thereof shall be subject to this Amended and Restated Agreement and
      the non-acquiring Party shall have the option to accept a proportionate interest
      in the acquired interest equal to its then Participating Interest. The
      non-acquiring Party shall thereafter pay to the acquiring Party its
      proportionate share of the latter’s actual out of pocket acquisition costs;
      provided that if such acquisition occurs prior to Earn-In, UPC shall pay for
      one
      hundred percent (100%) of the costs of such acquisition and such costs shall
      be
      applied to the Minimum Expenditures. If this Amended and Restated Agreement
      is
      terminated prior to completion of the Earn-In, for a period of one (1) year
      thereafter, UPC and its Affiliates shall not acquire any interest in land or
      minerals within the exterior boundaries of the Property and the area immediately
      surrounding the Property as described in Exhibit B.

    

    9.11 Recording.
      This
      Amended and Restated Agreement shall not be recorded in its entirety. Following
      the execution of this Amended and Restated Agreement, at the request of either
      Party, the Parties agree to execute, deliver and record with the Emery County
      Recorder’s Office, Utah, a memorandum evidencing the principal terms of this
      Amended and Restated Agreement.

    

    9.12 U.S.
      Dollars.
      Any
      payments of money under this Amended and Restated Agreement may be made by
      cash,
      check, wire or electronic wire funds transfer. All references to money as
      specified in this Amended and Restated Agreement shall be made in U.S.
      Dollars.

    

    9.13 Further
      Assurances.
      Each of
      the Parties agrees to promptly take such actions and execute and deliver such
      additional instruments as the Parties may from time to time deem reasonably
      necessary or convenient to implement and carry out the intent and purpose of
      this Amended and Restated Agreement. This may include a Mining Venture Agreement
      similar in form and substance to the Rocky Mountain Mineral Law
      Institute

    
      
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    Form
      Mining Venture Agreement (Form 5-1984) to incorporate the terms of this Amended
      and Restated Agreement.

    

    9.14 Specific
      Performance.
      Each
      Party shall have the remedy of specific performance of the obligations set
      forth
      herein.

    

    9.15 No
      Partition.
      No
      Party shall seek the partition or sale in lieu thereof of the Property and
      the
      Parties hereby waive any right of partition, or sale in lieu thereof, whether
      created by statue or otherwise.

    

    9.16 Liens,
      Burdens, Claims and Encumbrances.
      Except
      as approved by the management committee consistent with the voting requirements
      set out above, the Parties agree that the Property and their respective
      Participating Interests in the Venture will be maintained free and clear of
      any
      liens, burdens, claims or encumbrances. Each of the Parties shall immediately
      advise each other of any adverse claim against the Property which comes to
      its
      knowledge. The Manager shall prosecute and defend, but shall not initiate
      without consent of the management committee as provided above, all litigation
      or
      administrative proceedings arising out of operations.

    

    9.17 Management
      Fee.
      In
      addition to reimbursement for direct costs, the Manager shall receive as
      compensation for its services as Manager and in lieu of all off-site overhead
      costs, a management fee not to exceed (i) ten percent (10%) of direct costs
      associated with exploration activities and (ii) two percent (2%) of direct
      costs
      associated with contract work related to development and mining and the purchase
      of capital equipment. Provided further that the time of Mr. Chris Healey spent
      directly in planning or directing operations on the Property or in supervising
      the obtaining of or analysis of data obtained from the Property, as opposed
      to
      participating in general management affairs, shall be a “direct cost” not an
“overhead cost.” It is the intent of the Parties that the management fee should
      reimburse the Manager for all reasonable costs it incurs as serving as Manager
      and that the Manager shall not earn a profit or incur a loss in serving as
      Manager. The parties agree to periodically review and adjust, if necessary,
      the
      rate of the management fee in order to achieve the intent of the Parties as
      specified in this Section.

    

    9.18 Inurement.
      This
      Amended and Restated Agreement shall inure to and be binding on the successors
      and assigns of the Parties and shall run with the Property and be binding on
      any
      person or entity holding title to the Property.

    

    9.19 Maintenance
      of Property.
      During
      the term of this Amended and Restated Agreement, and as provided in Section
      9.5.1, the Manager, on behalf of the Venture, shall perform all work
      obligations, pay all taxes or duties and comply with all obligations under
      applicable law to maintain title to the Property in good standing. Prior to
      Earn-In, UPC’s costs associated with maintaining the Property shall be applied
      to the Minimum Expenditures.

    

    
      
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    9.20 Entire
      Agreement.
      This
      Amended and Restated Agreement constitutes the entire agreement between the
      Parties with respect to the Property. It supersedes and replaces all prior
      written or oral understandings heretofore communicated or interchanged between
      the Parties regarding the Property.

    

    9.21 Notice.
      Any
      notices or communications required or permitted hereunder shall be in writing
      and shall be effective when delivered by hand or facsimile as
      follows:

    

    
      	
              To
                Uranium Group at:

            	 	
              Uranium
                Group LLC

            
	 	 	
              3975
                West 8010 South

            
	 	 	
              West
                Jordan, Utah 84088 USA

            
	 	 	
              FAX:
                (801) 282-8889 (requires prior call)

            
	 	 	 
	
              To
                UPC at:

            	 	
              Uranium
                Power Corp.

            
	 	 	
              525-999
                West Hastings Street

            
	 	 	
              Vancouver,
                BC V6C 2W2

            
	 	 	
              FAX:
                (604) 689-1817

            

    

    

    9.22 Additional
      Consideration.
      Within
      ten (10) days following the Amended Effective Date, in consideration for
      amending the Agreement, UPC will pay to Uranium Group US$50,000. In addition,
      within 30 days of receipt of an invoice from Uranium Group, UPC will reimburse
      Uranium Group (a) for the legal costs incurred by Uranium Group in renegotiating
      the Agreement and in preparing this Amended and Restated Agreement and (b)
      for a
      new all terrain vehicle and trailer to be purchased by the Manager of Uranium
      Group in his name to replace the vehicle and trailer supplied by him to locate
      and maintain the Properties. The amounts reimbursed in (a) and (b) may be
      applied to amounts due in Sections 3.1.2.

    

    9.23 Effective
      Date.
      The
      terms of this Amended and Restated Agreement are subject to prior filing with
      the TSX Venture Exchange and approval by the members of Uranium Group. The
      later
      of the date the TSX Venture Exchange issues a Notice that the Amended and
      Restated Agreement has been accepted for filing or that the members of Uranium
      Group shall have approved this Amended and Restated Agreement shall for the
      purposes of this Amended and Restated Agreement be the “Amended Effective Date”.
      Each party agrees diligently to pursue such acceptance and
      approval.

    

    9.24 Governing
      Law.
      This
      Amended and Restated Agreement shall be construed and enforced in accordance
      with the laws of the State of Utah, without regard to the conflict of laws
      provisions thereof.

    

    Provided
      the foregoing Amended and Restated Agreement accurately reflects your
      understanding of our agreement, please so indicate by signing in the space
      provided below and returning both copies to the letterhead address. Upon
      execution by Uranium Group, a fully executed original will be returned to
      you.

    

    
      
        Page
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              Yours
                truly,

            
	 
	
              URANIUM
                GROUP LLC

            
	 	 
	 	 
	 	 
	
              By
                

            	
              /s/
                Scott J. Hill

            
	
              Title
                

            	
              Manager

            
	
              Date
                

            	
              5-2-06

            
	 	 
	
              ACCEPTED:

            
	
              URANIUM
                POWER CORP.

            
	 	 
	 	 
	 	 
	
              By
                

            	
              /s/
                Rahoul Sharan

            
	
              Title
                

            	
              President

            
	
              Date
                

            	
              2-5-06

            

    

    

    

    
      	
              Attachments:

            	
              Exhibit
                A - the “Property”

            
	 	
              Exhibit
                B - Area of Interest”

            
	 	
              Exhibit
                C - Gross Income Royalties and Net Profits
                Interest

            

    

    

    

    
      
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    EXHIBIT
      A

    

    The
      “Property”

    

    
      	
              I.
                Unpatented Mining Claims

            
	 	 	
              County

            	
              County

            	 	 	
              BLM

            	
              BLM

            	 
	
              Claim

            	
              Location

            	
              Filing

            	
              Document

            	 	 	
              Filing

            	
              UMC

            	 
	
              Name(s)

            	
              Date

            	
              Date

            	
              Number(s)

            	
              Book

            	
              Page(s)

            	
              Date

            	
              Number

            	
              Count

            
	 	 	 	 	 	 	 	 	 
	
              UGAP
                1-10

            	
              9/4/93

            	
              9/10/93

            	
              E334456-334465

            	
              J264

            	
              33-42

            	
              12/2/93

            	
              354391-354400

            	
              10

            
	 	 	 	 	 	 	 	 	 
	
              Saharacan
                1-8

            	
              9/18/04

            	
              10/15/04

            	
              E368620-368627

            	
              J266

            	
              691-698

            	
              12/15/04

            	
              372227-372234

            	
              8

            
	
              Saharacan
                9

            	
              10/11/96

            	
              11/8/96

            	
              E343236

            	
              J264

            	
              346

            	
              1/8/97

            	
              361626

            	
              1

            
	
              Saharacan10-14

            	
              9/17/04

            	
              10/15/04

            	
              E368628-368632

            	
              J266

            	
              699-703

            	
              12/15/04

            	
              372235-372239

            	
              5

            
	
              Saharacan
                15-27

            	
              9/18/04

            	
              10/15/04

            	
              E368633-368645

            	
              J266

            	
              704-716

            	
              12/15/04

            	
              372240-372252

            	
              13

            
	 	 	 	 	 	 	 	 	 
	
              Saharan
                1-7

            	
              9/4/00

            	
              9/29/00

            	
              E356459-E356465

            	
              J266

            	
              254-260

            	
              12/1/00

            	
              367552-367558

            	
              7

            
	
              Saharan
                8-26

            	
              9/18/04

            	
              10/15/04

            	
              E368601-E368619

            	
              J266

            	
              672-690

            	
              12/15/04

            	
              372253-372271

            	
              19

            
	 	 	 	 	 	 	 	 	 
	
              Pulsar
                1-2

            	
              11/27/04

            	
              12/22/04

            	
              E369190,
                E369191

            	
              J266

            	
              781A,
                782

            	
              2/23/05

            	
              373802,
                373803

            	
              2

            
	
              Pulsar
                3-8

            	
              11/26/04

            	
              12/22/04

            	
              E369192-E369197

            	
              J266

            	
              783-788

            	
              2/23/05

            	
              373804-373809

            	
              6

            
	
              Pulsar
                9-16

            	
              11/27/04

            	
              12/22/04

            	
              E369198-E369205

            	
              J266

            	
              789-796

            	
              2/23/05

            	
              373810-373817

            	
              8

            
	
              Pulsar
                17

            	
              5/9/05

            	
              5/10/05

            	
              E370880

            	
              J267

            	
              745

            	
              7/12/05

            	
              377994

            	
              1

            
	
              Pulsar
                18-21

            	
              1/1/05

            	
              1/26/05

            	
              E369457-E369460

            	
              J266

            	
              838-841

            	
              3/25/05

            	
              374453-374456

            	
              4

            
	
              Pulsar
                22

            	
              12/4/04

            	
              12/22/04

            	
              E369206

            	
              J266

            	
              842

            	
              2/23/05

            	
              373818

            	
              1

            
	
              Pulsar
                23

            	
              5/9/05

            	
              5/10/05

            	
              E370881

            	
              J267

            	
              746

            	
              7/12/05

            	
              377995

            	
              1

            
	
              Pulsar
                24, 25

            	
              12/30/04

            	
              1/26/05

            	
              E369433,
                E369434

            	
              J266

            	
              814,
                815

            	
              3/25/05

            	
              374457,
                374458

            	
              2

            
	
              Pulsar
                26-29

            	
              12/30/04

            	
              1/26/05

            	
              E369435-E369438

            	
              J266

            	
              816-819

            	
              3/25/05

            	
              374443-374446

            	
              4

            
	
              Pulsar
                30-35

            	
              1/1/05

            	
              1/26/05

            	
              E369461-E369466

            	
              J266

            	
              842-847

            	
              3/25/05

            	
              374447-374452

            	
              6

            
	 	 	 	 	 	 	 	 	 
	
              Quasar
                1-8

            	
              1/22/05

            	
              2/9/05

            	
              E369842-E369849

            	
              J267

            	
              300-307

            	
              3/25/05

            	
              374433-374440

            	
              8

            
	
              Quasar
                9, 10

            	
              1/14/05

            	
              2/9/05

            	
              E369850,
                E369851

            	
              J267

            	
              308,
                309

            	
              3/25/05

            	
              374441,
                374442

            	
              2

            
	
              Quasar
                11-32

            	
              4/15/05

            	
              5/10/05

            	
              E370882-E370903

            	
              J267

            	
              747-768

            	
              7/12/05

            	
              377996-378017

            	
              22

            
	
              Quasar
                33-47

            	
              4/14/05

            	
              5/10/05

            	
              E370904-E370918

            	
              J267

            	
              769-783

            	
              7/12/05

            	
              378018-378032

            	
              15

            
	
              Quasar
                48-52

            	
              4/15/05

            	
              5/10/05

            	
              E370919-E370923

            	
              J267

            	
              784-788

            	
              7/12/05

            	
              378033-378037

            	
              5

            
	 	 	 	 	 	 	 	 	 
	
              Nova
                1-12

            	
              12/31/04

            	
              1/26/05

            	
              E369439-E369450

            	
              J266

            	
              820-831

            	
              3/25/05

            	
              374519-374530

            	
              12

            
	
              Nova
                13-18

            	
              12/31/04

            	
              1/26/05

            	
              E369451-E369456

            	
              J266

            	
              832-837

            	
              3/25/05

            	
              374504-374509

            	
              6

            
	
              Nova
                19-26

            	
              1/15/05

            	
              2/9/05

            	
              E369732-E369739

            	
              J267

            	
              190-197

            	
              3/25/05

            	
              374510-374517

            	
              8

            
	
              Nova
                27

            	
              1//17/05

            	
              2/9/05

            	
              E369740

            	
              J267

            	
              198

            	
              3/25/05

            	
              374518

            	
              1

            
	
              Nova
                28-54

            	
              1/17/05

            	
              2/9/05

            	
              E369741-E369767

            	
              J267

            	
              199-225

            	
              3/25/05

            	
              374459-374485

            	
              27

            
	
              Nova
                55-72

            	
              1/22/05

            	
              2/9/05

            	
              E369768-E369785

            	
              J267

            	
              226-243

            	
              3/25/05

            	
              374486-374503

            	
              18

            
	 	 	 	 	 	 	 	 	 
	
              Orion
                1-28

            	
              1/14/05

            	
              2/9/05

            	
              E369786-E369813

            	
              J267

            	
              244-271

            	
              3/25/05

            	
              374531-374558

            	
              28

            
	
              Orion
                29-56

            	
              1/17/05

            	
              2/9/05

            	
              E369814-E369841

            	
              J267

            	
              272-299

            	
              3/25/05

            	
              374559-374586

            	
              28

            
	 	 	 	 	 	 	 	 	 
	
              Taurus
                00, 0 - 30

            	
              1/22/05

            	
              2/9/05

            	
              E369852-E369883

            	
              J267

            	
              310-341

            	
              3/25/05

            	
              374587-374618

            	
              32

            
	 	 	 	 	 	 	 	 	 
	
              Sirius
                1-24

            	
              2/5/05

            	
              2/9/05

            	
              E369884-E369907

            	
              J267

            	
              342-365

            	
              3/25/05

            	
              374634-374657

            	
              24

            
	
              Sirius
                25

            	
              2/19/05

            	
              3/4//05

            	
              E370345

            	
              J267

            	
              674

            	
              3/25/05

            	
              374658

            	
              1

            
	
              Sirius
                26 Frac.

            	
              2/19/05

            	
              3/4/05

            	
              E370346

            	
              J267

            	
              675

            	
              3/25/05

            	
              374659

            	
              1

            
	
              Sirius
                27

            	
              2/19/05

            	
              3/4/05

            	
              E370347

            	
              J267

            	
              676

            	
              3/25/05

            	
              374660

            	
              1

            
	
              Sirius
                28-42

            	
              2/19/05

            	
              3/4/05

            	
              E370348-E370362

            	
              J267

            	
              677-691

            	
              3/25/05

            	
              374619-374633

            	
              15

            
	 	 	 	 	 	 	 	 	 
	
              Saturn
                1-16

            	
              2/17/05

            	
              3/4/05

            	
              E370305-E370320

            	
              J267

            	
              634-649

            	
              3/25/05

            	
              374661-374676

            	
              16

            
	
              Saturn
                18

            	
              2/17/05

            	
              3/4/05

            	
              E370321

            	
              J267

            	
              650

            	
              3/25/05

            	
              374677

            	
              1

            
	
              Saturn
                20

            	
              2/17/05

            	
              3/4/05

            	
              E370322

            	
              J267

            	
              651

            	
              3/25/05

            	
              374678

            	
              1

            
	
              Saturn
                22

            	
              2/17/05

            	
              3/4/05

            	
              E370323

            	
              J267

            	
              652

            	
              3/25/05

            	
              374679

            	
              1

            
	
              Saturn
                24

            	
              2/17/05

            	
              3/4/05

            	
              E370324

            	
              J267

            	
              653

            	
              3/25/05

            	
              374680

            	
              1

            
	
              Saturn
                25-44

            	
              2/18/05

            	
              3/4/05

            	
              E270325-E370344

            	
              J267

            	
              654-673

            	
              3/25/05

            	
              374681-374700

            	
              20

            
	 	 	 	 	 	 	 	 	 
	
              Polaris
                1-36

            	
              2/21/05

            	
              3/4/05

            	
              E370363-E370398

            	
              J267

            	
              692-727

            	
              3/25/05

            	
              374701-374736

            	
              36

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              Total

            	
              428

            

    

    

    
      
        Page
          17

        849277.1 

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        850468.1 

        4/19/06 

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Subject
      to the following:

    

    1.
      UGAP
      1-10: No Emery County Recordings of annual BLM fee payments.

    2.
      Saharacan 7: Overlap into Utah State Highway easement.

    3.
      Saharacan 9: No Emery County Recordings of annual BLM fee payments.

    4.
      Saharan 1-7: No Emery County Recordings of annual BLM fee payments.

    5.
      Saharan 4-6: Overlap into Utah State Section 2, T22S R14E.

    6.
      Saharan 8, 26: Overlap into Utah State Section 2, T22S R14E.

    7.
      Nova
      1, 3, 5, 7, 9, 11, 13, 15, 17: Overlap into Utah State Section 2, T22S
      R14E.

    8.
      Nova
      17-20: Overlap into Utah State Section 36, T21S R14E.

    9.
      Nova
      56: Overlap into Utah State Section 32, T21S R15E.

    10
      Polaris 20, 22, 24, 26, 28, 30, 32, 34, 36 - Overlap into Utah State Section
      32,
      T21S R15E.

    11.
      Polaris 9, 11, 13, 15, 17, 18 - Overlap senior CC claims, Polaris discovery
      monuments on open ground.

    12.
      Sirius 44,46,48,50,52,54 - Overlap into Utah State Section 16, T22S
      R15E.

    

    II.
      State
      Mineral Leases

    

    
      	
              Utah
                State Lease

            	 	
              Effective
                Date

            	 	
              Land
                Covered

            
	 	 	 	 	 
	
              ML
                48685

            	 	
              January
                31, 2001 

            	 	
              Sec
                2, T 22 S, R 14 E

            
	 	 	 	 	 
	
              ML
                49588

            	 	
              January
                14, 2005

            	 	
              Sec
                32, T 21 S, R 15 E

            
	 	 	 	 	 
	
              ML
                49589

            	 	
              January
                14, 2005

            	 	
              Sec
                36, T 22 S, R 14 E

            
	 	 	 	 	 
	
              ML
                49715

            	 	
              March
                11, 2005

            	 	
              Sec
                2, T 22 S, R 15 E

            
	 	 	 	 	 
	
              ML
                49715

            	 	
              March
                11, 2005

            	 	
              Sec
                16, T 22 S, R 15 E

            

    

    

    
      
        Page
          18

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    EXHIBIT
      B

    

    Area
      of Interest”

    

    

    The
      Area
      of Interest shall be defined as:

    

    that
      area
      surrounding the Property and bordered on the north by the southern right-of-way
      boundary of Interstate 70 as it exists on the Effective Date of the agreement,
      on the west by the eastern bank of the San Rafael River, on the east by the
      western bank of the Green River, and on the south by the southern boundary
      of T.
      23 S., R. 14, 15 and 16 E., projected to the east and to the west to the point
      of intersection with the Green River and the San Rafael River, respectively.
      All
      river boundaries are to be fixed at the locations published on the USGS 7.5
      Minute Topographic Quadrangle Maps, Provisional Edition 1988, for the Jessies
      Twist, Green River, Horse Bench West and Horse Bench Quadrangles.

    

    

    
      
        Page
          19

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    Exhibit
      C

     

    

     

    Gross
      Income Royalty and Net Profits Interest 

     

    

     

    I. GROSS
      INCOME ROYALTY CALCULATION

     

    

    A. Gross
      Income Definition.

     

    1. “Gross
      Income” for the calendar quarter shall mean the total amount of Revenues
      actually received by the Payor from the sale of Products, less to the extent
      actually paid or incurred by the Payor, (a) the cost of transportation,
      including insurance, of Products between the mill where Products are produced
      and the buyer, (b) any independent representative and umpire charges, and (c)
      taxes (other than income taxes) imposed upon or in connection with selling
      Products.

     

    2. In
      no
      event shall the Payor deduct the cost of exploration, development, mining,
      milling, leaching or any other processing costs in the determination of Gross
      Income Return.

    

    B. Definitions
      Not Included in the Amended and Restated Agreement.

    

    1. Capitalized
      terms used in this Exhibit C shall have the meaning given to them in the Amended
      and Restated Option and Joint Venture Agreement unless defined in this Exhibit
      C.

     

    2. “Payor”
      shall mean the person or entity obligated to pay a Gross Income Royalty Or
      a Net
      Profits Interest to the Royalty Holder pursuant to the terms of the Amended
      and
      Restated Agreement.

     

    3. “Royalty
      Holder” shall mean the person or entity entitled to receive a Gross Income
      Royalty or a Net Profits Interest pursuant to the terms of the Amended and
      Restated Agreement.

     

    4. “Revenues”
      shall mean the total amounts received by the Payor from the sale of Products
      produced from the Property at the point of sale, less all selling costs,
      provided such sales are arm’s length transactions, and provided further that
      sales to Affiliates of the Payor are valued at the fair market value of the
      Products sold. 

     

    II. NET
      PROFITS CALCULATION

     

    A.  Net
      Profits Interest Definition.
      "Net
      Profits Interest" means for any calendar quarter means the excess, if any,
      of
      Gross Proceeds for the period over the aggregate of:

     

    
      	 	
              i.

            	
              Operating
                Costs for the period;

            

    

     

    
      
        Page
          20

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        850468.1 

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              ii.

            	
              Operating
                Costs for all previous periods to the extent they have exceeded Gross
                Proceeds from such periods and have not previously been deducted
                in
                computing Net Profits; and

            

    

     

    
      	 	
              iii.

            	
              such
                reasonable amount of cash as is required for the ensuing three month
                period for working capital as, in the opinion of the Payor, is required
                for the Operation of the Property as a Mine, provided that this amount
                shall be added to Gross Proceeds when calculating Net Profits for
                the next
                ensuing period;

            

    

     

    
      	 	
              iv.

            	
              A
                charge for Expenditures and Post-production Capital Expenses, calculated
                as provided in paragraph 5.xi below, to the extent they have not
                previously been deducted in computing Net
                Profits

            

    

     

    B.  Other
      Definitions.
      In
      determining Net Profits the following definitions shall apply:

     

    
      	 	
              1.

            	
              "Commercial
                Production" means Operating the Property as a Mine but shall not
                include
                milling of ores for the purpose of testing or milling by a pilot
                plant or
                milling during an initial tune-up period of a plant. Commercial Production
                shall be deemed to have commenced on the day upon which uranium or
                vanadium bearing ores have been produced from the Property on a continuous
                basis for a period of 30 working
                days;

            

    

     

    
      	 	
              2.

            	
              "Expenditures"
                means all cash, expenses, obligations and liabilities of whatever
                kind or
                nature spent or incurred directly or indirectly by the Payor following
                conversion of the Participating Interest of the Royalty Holder to
                a Gross
                Income Royalty or a Net Profits Interest as provided in the Amended
                and
                Restated Agreement, up to and including the date of commencement
                of
                Commercial Production in connection with the exploration and development
                of the Claims, the acquisition of Other Tenements, and the equipping
                of
                the Property for Commercial Production, including, without limiting
                the
                generality of the foregoing, monies expended in maintaining the Property
                in good standing by doing and filing assessment work, in doing
                geophysical, geochemical and geological surveys, drilling, assaying
                and
                metallurgical testing, in paying the fees, wages, salaries, traveling
                expenses, and fringe benefits (whether or not required by law) of
                all
                persons engaged in work in respect to and for the benefit of the
                Property,
                in paying for the food, lodging and other reasonable needs of such
                men,
                and in supervision and management of all work done with respect to
                and for
                the benefit of the Property, plus an amount not to exceed 3% of such
                costs
                as compensation for overhead and other similar expenses which the
                Payor
                will incur but which cannot be specifically allocated; and sufficient
                initial working capital to finance the first three months of production
                as
                in the opinion of the Payor is required for the Operation of the
                Property
                as a Mine;

            

    

     

    
      
        Page
          21

        849277.1 

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        850468.1 

        4/19/06 

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              3.

            	
              "Gross
                Proceeds" means, for any period, the aggregate gross Revenues received
                by
                the Payor during the period from the sale of Products produced in
                Operating the Property as a Mine and any cash proceeds received during
                the
                period from the disposition of any capital assets the cost of which
                has
                been treated as an Expenditure or a Post-production Capital
                Expense;

            

    

     

    
      	 	
              4.

            	
              "Mining
                Facilities" means all mines and plants, including without limitation,
                all
                pits, shafts, haulage ways, and other underground workings, and all
                buildings, plants, facilities and other structures, fixtures and
                improvements, and all other property, whether fixed or moveable,
                as the
                same may exist at any time in, on or outside the Property and relating
                to
                the Operation of the Property as a
                Mine;

            

    

     

    
      	 	
              5.

            	
              "Operating
                Costs" means, for any period, all costs, expenses, obligations,
                liabilities and charges of whatsoever kind and nature incurred or
                chargeable, directly or indirectly by the Payor, after commencement
                of
                Commercial Production in connection with the Operation of the Property
                as
                a Mine during the period, which costs, expenses, obligations, liabilities
                and charges shall include, without limiting the generality of the
                foregoing, the following:

            

    

    

    
      	 	
              i.

            	
              all
                costs of or related the Operation of the Property as a
                Mine;

            

    

     

    
      	 	
              ii.

            	
              all
                costs of or related to the processing and marketing of Products including,
                without limitation, transportation, storage, commissions and/or
                discounts;

            

    

     

    
      	 	
              iii.

            	
              all
                costs of acquiring Other Tenements and maintaining in good standing
                or
                renewing from time to time the Property including the payment of
                all
                royalties and taxes of any nature whatsoever in connection
                therewith;

            

    

     

    
      	 	
              iv.

            	
              all
                costs of or related to providing and/or operating employee facilities,
                including housing;

            

    

     

    
      	 	
              v.

            	
              all
                duties, charges, levies, royalties, taxes (excluding taxes levied
                on
                income) and other payments imposed upon or in connection with Operating
                the Property as a Mine by any govern-ment or department or agency
                thereof;

            

    

     

    
      	 	
              vi.

            	
              all
                costs of consulting, legal, accounting, insurance and other
                services;

            

    

     

    
      	 	
              vii.

            	
              all
                interest expenditures incurred after Commencement of Commercial
                Production;

            

    

     

    
      	 	
              viii.

            	
              all
                costs of construction, equipment, mine development, after Commencement
                of
                Commercial Production, including capital costs, maintenance, repairs
                and
                replacements, except capital expenditures relating to a major improvement,
                expansion, modernization or replacement

            

    

     

    
      
        Page
          22

        849277.1 

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        850468.1 

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    of
      the
      mining facilities (for the purposes hereof a major improvement, expansion,
      modernization or replacement of the mining facilities is one which involves
      an
      aggregate cost in any one year of more than $l,000,000.00);

     

    
      	 	
              x.

            	
              all
                costs for pollution control, reclamation or any other similar costs
                incurred or to be incurred by the
                Payor);

            

    

     

    
      	 	
              xi.

            	
              a
                charge for the Payor's Expenditures and Post-production Capital Expenses
                to be amortized, and charged by the Payor in the same manner as reported
                by the Payor for income tax
                purposes;

            

    

     

    
      	 	
              xii.

            	
              any
                costs or expenses incurred or to be incurred relating to the termination
                of the Operation of the Property as a
                Mine;

            

    

    

    Except
      where specific provision is made otherwise, all Expenditures and Operating
      Costs
      shall be determined in accordance with generally accepted accounting principles
      consistently applied. It is the intent of the parties that there be no
      duplication in charges made under this agreement;

     

    
      	 	
              6.

            	
              "Operating
                the Property as a Mine/Operation of the Property as a Mine" means
                the
                extraction or production of minerals or metals from the Property,
                the
                milling, smelting, refining, beneficiating, and other processing
                of such
                minerals and metals and the marketing of
                Products;

            

    

     

    
      	 	
              7.

            	
              "Other
                Tenements" means all surface rights of and to any lands within or
                outside
                the Property including surface rights held in fee or under lease,
                license,
                easement, right of way or other rights of any kind (and all renewals,
                extensions and amendments thereof) acquired by or on behalf of the
                Payor
                for use for the benefit of the
                Property;

            

    

     

    
      	 	
              8.

            	
              "Post-production
                Capital Expenses" means all such costs expended or incurred by the
                Payor
                after commencement of Commercial Production in connection with a
                major
                improvement, expansion, modernization or replacement of the Mining
                Facilities as are excluded from operating costs under subparagraph
                5.ix;

            

    

     

    III. PAYMENTS.

     

    1. If
      the
      Payor produces and sells Products, the Gross Income Royalty or the Net Profits
      Interest to be paid to the Royalty Holder shall be calculated by multiplying
      the
      amount of Gross Income Royalty determined in Section I or the amount of Net
      Profits Interest determined in Section II by the percentage of Gross Income
      Royalty or Net Profits Interest to which the Royalty Holder is entitled under
      the Amended and Restated Agreement. Payment (or if no payment is due an
      accounting showing such fact) shall be made within 30 days after the end of
      any
      calendar quarter in which Payor receives Revenues from the sale of Products
      during the calendar quarter.

     

    
      
        Page
          23

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    2, The
      Payor
      shall provide copies of all data relating to the Gross Income Royalty or Net
      Profits Interest calculation (including, but not limited to, settlement sheets
      used in calculating the Royalty Holder’s Gross Income Royalty or Net Profits
      Interest) to the Royalty Holder at the same time that the Royalty Holder’s Gross
      Income Royalty or Net Profits Interest payments are paid.

     

    3. For
      purposes of determining whether the Gross Income Royalty or the Net Profits
      Interest is greater as provided in Section 5.4 of the Amended and Restated
      Agreement, the Royalty Holder shall be paid the Gross Income Royalty on a
      quarterly basis. Within six months of the end of each fiscal year following
      Commencement of Commercial Production (for purposes of this provision, a “fiscal
      year” shall mean the calendar quarter in which such commencement occurred,
      together with the next three calendar quarters and each subsequent four calendar
      quarters thereafter) the Payor shall calculate and provide to the Royalty Holder
      a written statement cumulative Gross Income Royalty and a cumulative Net Profits
      Interest for the Property. If the cumulative amounts actually paid to the
      Royalty Holder are less than the amounts that would have been paid under such
      calculations, within 30 days of the end of such six month period, the Payor
      shall make a reconciling payment equal to the difference between actual and
      calculated payments. The process shall be repeated at the end of each subsequent
      fiscal year.

     

    IV. AUDITS
      AND DISPUTES.

     

    1. The
      Royalty Holder, upon written notice, shall have the right to audit, or to have
      an independent firm of certified public accountants audit, the records that
      relate to the calculation of the Gross Income Royalty or Net Profits Interest
      within 6 months after receiving the written statement following the end of
      each
      fiscal year as described in Section C.3 above.

     

    2. The
      Royalty Holder shall be deemed to have waived any right it may have had to
      object to a payment made for any fiscal year, unless it provides notice in
      writing of such objection within 12 months after receipt the written statement
      following the end of each fiscal year as described in Section C.3 above, unless
      an audit is conducted, in which case the Royalty Holder shall have 30 days
      from
      conclusion of the audit to provide such notice. If the parties are unable to
      resolve the dispute within 60 days after the receipt of such notice, the dispute
      shall be resolved by arbitration in Salt Lake City, Utah, pursuant to the
      commercial arbitration rules of the American Arbitration Association. The
      resolution pursuant to such arbitration shall be binding on the parties.
      Alternatively, the parties may elect to submit the dispute to a mutually
      acceptable certified public accountant, or firm of certified public accountants,
      for a binding resolution thereof. Unless the parties agree to share the costs
      of
      arbitration, the arbitrator shall determine what part of the costs and expenses
      incurred in any such proceeding shall be borne by each party participating
      in
      the arbitration.

     

    V. GENERAL.

     

    1. Unless
      otherwise specified, capitalized terms used herein shall have the same meaning
      as given to them in the Amended and Restated Agreement to which this Exhibit
      C
      is attached.

     

    2. The
      Payor
      shall keep true and accurate books and records for the purposes of this Exhibit.
      Such books and records shall be kept on the accrual basis in accordance with
      generally accepted accounting principles and practices consistently
      applied.

     

    
      
        Page
          24

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    3. The
      Royalty Holder or its authorized representative on not less than two days’
notice to the Payor, may enter upon all surface and subsurface portions of
      the
      Properties for the purpose of inspecting the Properties, all improvements
      thereto and operations thereon, and may inspect and copy all records and data
      pertaining to the calculation of its interest, including without limitation
      such
      records and data which are maintained electronically. The Royalty Holder or
      its
      authorized representative shall enter the Property at the Royalty Holder’s own
      risk and may not unreasonably hinder operations on or pertaining to the
      Property. Subject to any insurance carried by the Payor with respect to the
      Property, the Royalty Holder shall indemnify and hold harmless the Payor and
      its
      Affiliates (including without limitation direct and indirect parent companies),
      and its or their respective directors, officers, shareholders, employees, agents
      and attorneys, from and against any Liabilities which may be imposed upon,
      asserted against or incurred by any of them by reason of injury to the Royalty
      Holder or any of its agents or representatives caused by the Royalty Holder’s
      exercise of its rights herein, unless such injury results from the negligence
      or
      willful misconduct of Payor.

     

    4. All
      notices or communications hereunder shall be made and effective in accordance
      with the provisions of the Amended and Restated Agreement.

     

    5. The
      Net
      Profits Interest and Gross Income Royalty shall attached to any amendments,
      relocations or conversions of any mining claims or leases comprising the
      Property, or to any renewals or extensions of leases, and to any mineral rights
      acquired by the Payor and any Affiliates in lands embraced within the Property
      or the Area of Interest within three years after the loss or relinquishment
      of
      any mining claim or lease comprising the Property. The Net Profits Interest
      and
      Gross Income Royalty shall be a real property interest that runs with the
      Properties and shall be applicable to any person who produces and sells Products
      from the Property.

     

    6. All
      information and data provided to Royalty Holder shall be subject to the
      confidentiality provisions of Section 9.9 of the Amended and Restated
      Agreement.

     

    7. Notwithstanding
      anything to the contrary herein, the Payor shall have the right to mine and
      market amounts of Products reasonably necessary for non-bulk sampling, assaying,
      metallurgical testing and evaluation of the minerals potential of the Property
      without initiating the obligation to make payments hereunder.

     

    8. The
      Payor
      shall have the right to commingle ores and minerals from the Property with
      ore
      and minerals produced from other lands and properties; provided, however, that
      the Payor shall first calculate from representative samples the average grade
      of
      the ore and minerals and shall weigh (or calculate by volume) the ore before
      commingling. If concentrates are produced from the commingled ores by the Payor,
      the Payor shall also calculate from representative samples the average recovery
      percentage for all concentrates produced during the calendar quarter. In
      obtaining representative samples, calculating the average grade of the ore
      and
      minerals and average recovery percentages, the Payor may use any procedures
      generally accepted in the mining and metallurgical industry which it believes
      suitable for the type of mining and processing activity being conducted and,
      in
      the absence of negligence or fraud, its choice of such procedures shall be
      final
      and binding on the Royalty Holder. In addition, comparable procedures may be
      used by the Payor to apportion among the commingled ores and minerals penalty
      charges, if any, imposed by the purchaser of such ore or minerals.

     

     

    
      
        
          Page
            25

          849277.1 

          4/14/06 

          850468.1 

          4/19/06EXHIBIT 10.1

                 JOINT STIPULATION OF SETTLEMENT
                 IN THE UNITED STATES DISTRICT COURT
                  MIDDLE DISTRICT OF TENNESSEE
                       NASHVILLE DIVISION

ERRIC WALKER, STEVE RICKETTS,   )
and VICKIE ATCHLEY, on behalf of)
themselves and all others       )    CASE NO. 3-02-1078
similarly situated,             )
                                )    JUDGE TRAUGER
          Plaintiffs,           )
                                )    JOINT STIPULATION
vs.                             )    OF SETTLEMENT
                                )
RYAN'S FAMILY STEAK             )
HOUSES, INC.,                   )
                                )
                    Defendant.  )
________________________________)

     This  Joint Stipulation of Settlement ("Joint Stipulation")

is  made  and  entered  into  by and  between  defendant  RYAN'S

RESTAURANT  GROUP, INC. f/k/a RYAN'S FAMILY STEAK HOUSES,  INC.,

("Ryan's"),  on the one hand, and ERRIC WALKER, STEVE  RICKETTS,

and    VICKIE    ATCHLEY   ("Representative    Plaintiffs"    or

"Plaintiffs"),  on behalf of themselves and  on  behalf  of  all

others  similarly  situated  as  hereinafter  more  particularly

defined (the "Eligible Class"), on the other hand, in the action

pending  in  the  United States District Court  for  the  Middle

District  of  Tennessee (the "Court"), Case No.  3-02-1078  (the

"Action") subject to the terms and conditions hereof.

     1.     Definitions:   For  the  purposes  of   this   Joint

Stipulation,  the  following terms  shall  carry  the  following

accompanying definitions:

          a.    "Action":   Walker, et. al.,  v.  Ryan's  Family

Steak  Houses, Inc., United States District Court for the Middle

District of Tennessee (the "Court"), Case No. 3-02-1078.

          b.    "Claim Deadline":  The date by which Claim Forms

must be post-marked or received by the Settlement Administrator,

namely,  60 days from original mailing of Notice, in  order  for

Eligible Class Members to be included in the Settlement Class.

          c.    "Claim  Form":   The  form  attached  hereto  as

Exhibit 2.

          d.    "Claim Share":  The amount of money allocated to

each  Settlement Class Member pursuant to Section 8(d)  of  this

Joint Stipulation.

          e.    "Class  Counsel":  Counsel for  the  Plaintiffs,

Stewart, Estes & Donnell.

          f.     "Complaint":   The  Complaint  filed   by   the

Representative Plaintiffs in the Action.

          g.    "Court":  The United States District  Court  for

the Middle District of Tennessee.

          h.    "Disbursement Date":  The date which is  fifteen

(15) business days after the date upon which the Final Order  of

Dismissal  entered  by  the  Court has  become  final  and  non-

appealable.

          i.     "Eligible   Class"   and/or   "Eligible   Class

Member(s)":  Present and former hourly-paid restaurant employees

(including,  but not limited to, servers, cooks,  meat  cutters,

dishwashers, and other hourly-paid employees) who were  employed

by  Ryan's for any period of time between November 12, 1999  and

August 2, 2005 ("Recovery Period").

          j.    "Final Order of Dismissal":  The Order  attached

hereto as Exhibit 4 dismissing with prejudice the claims of  the

Settlement  Class  who  are to be identified  in  a  spreadsheet

attached to said Order.

          k.   "Notice":  The Notice of Settlement form attached

hereto as Exhibit 1.

          l.    "Parties":   The Representative  Plaintiffs  and

Ryan's.

          m.    "Questionnaire":  The form  attached  hereto  as

Exhibit 3.

          n.    "Recovery  Period":  November 12,  1999  through

August 2, 2005.

          o.   "Representative Plaintiffs":  The individuals who

are  the  named Plaintiffs on the Complaint filed in the Action;

namely, Erric Walker, Steven Ricketts, and Vickie Atchley.

          p.   "Ryan's Counsel":  Counsel for the Defendant,

Nexsen Pruet, LLC, and Constangy, Brooks & Smith, LLC.

          q.    "Settlement": The agreement between the  Parties

set  forth  in  this  Joint Stipulation and  in  the  settlement

confirmation  letter dated February 7, 2006 attached  hereto  as

Exhibit 5.

          r.    "Settlement Administrator": Garden  City  Group,

Inc., ("Garden City"),

P. O. Box 91136, Seattle, Washington 98111-9236.

          s.     "Settlement   Class"   or   "Settlement   Class

Member(s)":  Those Members of the Eligible Class who timely file

Claim Forms.

     2.    On  November 12, 2002, the Representative Plaintiffs,

Erric  Walker, Steve Ricketts, and Vickie Atchley  brought  this

lawsuit  in  the  United States District Court  for  the  Middle

District  of  Tennessee against Defendant  Ryan's  Family  Steak

Houses,  Inc., ("Ryan's") on behalf of themselves and all  other

past  and  present  similarly-situated restaurant  employees  of

Ryan's  who  were  paid  on  an hourly  basis  in  any  position

(including,  but not limited to, servers, cooks,  meat  cutters,

dishwashers,  and  other hourly-paid employees),  alleging  that

they  are  owed unpaid wages and overtime pay under the  federal

Fair Labor Standards Act ("FLSA").

     Ryan's  denies  Plaintiffs'  allegations  and  denies   any

wrongdoing,  and has vigorously opposed the claims made  against

it.   This  Settlement  is a compromise of disputed  claims  and

defenses  and  should  not  be  construed  as  any  evidence  of

wrongdoing whatsoever by Ryan's.

     3.   The Parties have conducted significant investigation of

the  facts  and law during the prosecution of this Action.   Such

investigation   has  included,  inter  alia,  the   exchange   of

information   pursuant   to  informal   and   formal   discovery;

depositions  of the Representative Plaintiffs, and  of  corporate

representatives  of  Ryan's and EDSI (Ryan's arbitration  service

provider);   extensive  interviews  and/or  surveys  of   certain

Eligible Class Members; numerous meetings and conferences between

representatives  of  the  Parties,  and  interviews  of  numerous

potential  witnesses.   Class Counsel  and  Ryan's  Counsel  have

further  investigated the applicable law as applied to the  facts

discovered regarding the causes of action and damages claimed  in

the Action, and the potential defenses thereto.  In addition, the

Parties  engaged in an extensive session of mediated  negotiation

of  this  dispute conducted by Attorney Hunter Hughes in Atlanta,

Georgia, on September 22, 2005, and thereafter continued  intense

and  arms-length negotiations for a period of five  months  which

culminated in this Settlement.

      In  addition to investigation and discovery related to  the

merits  of  the  Action,  the Parties  vigorously  litigated  the

validity of arbitration agreements entered between Eligible Class

Members and EDSI, which resulted in two reported decisions, viz.,

Walker  v. Ryan's Family Steak Houses, Inc., 289 F. Supp. 2d  916

(M.D.  Tenn.  2003),  and Walker v. Ryan's Family  Steak  Houses,

Inc.,  400  F. 3d 370 (6th Cir. 2005).  Litigation of this  issue

culminated  in a Petition for Certiorari filed by Ryan's  in  the

United  States  Supreme Court in which Ryan's asked  the  Supreme

Court  to  review and overturn this Court and the  Sixth  Circuit

Court  of  Appeals decisions, which Petition was  denied  at  126

S.Ct. 730 (2005).

     4.    The  Parties  desire fully, finally,  and  forever  to

settle, compromise, and discharge the disputes and claims arising

from  or  raised  in the Complaint, and intend to accomplish  the

full  and  complete settlement and release of certain  claims  of

Settlement Class Members related to this Action as set  forth  in

Section 16.

     5.   Eligible Class Member(s) are eligible to participate in

this  Settlement  by  virtue of having been  employed  by  Ryan's

during the Recovery Period, and by meeting the other requirements

of the Settlement.

     6.   Class Counsel have formally and informally investigated

the  facts  of the Action, including extensive interviews  and/or

surveys of Eligible Class Members and depositions of the parties,

including the Representative Plaintiffs and persons designated by

Defendants  as  those  persons most knowledgeable  regarding  the

nature  and  size  of the Eligible Class and the  average  wages,

positions, and workweeks worked by Eligible Class Members  during

the  Recovery  Period.  Class Counsel has diligently investigated

the  claims asserted in the Complaint against Ryan's.   Based  on

their own independent investigation and evaluation, Class Counsel

is  of  the  opinion  that the Settlement  is  fair,  reasonable,

adequate, and is in the best interest of the Settlement Class  in

light of all known facts and circumstances, including the risk of

significant  delay, further litigation and the numerous  defenses

and  the  actual  and  potential issues Ryan's  is  and/or  would

assert,    including   decertification   of   the   conditionally

"certified" similarly situated class.

     7.    The  Parties agree to cooperate and to take all  steps

reasonable,  necessary and appropriate to dismiss with  prejudice

the Complaint, and all causes of action contained therein, so  as

to  avoid the necessity of further expense and litigation in  the

above-referenced matter.

                      TERMS AND SETTLEMENT

     8.     NOW,  THEREFORE,  in  consideration  of  the   mutual

covenants, promises and warranties set forth herein, the  Parties

agree as follows:

          a.    That the Action and all claims for minimum  wages

or  overtime during the Recovery Period for all Settlement  Class

Members  who  participate in this Settlement,  whether  based  on

federal  or  state  laws, will be dismissed on  the  merits  with

prejudice, subject to the terms and conditions set forth in,  and

approval by the Court of, this Joint Stipulation.

          b.    Neither Party shall have the right to appeal  any

order approving this Joint Stipulation, and all parties expressly

waive the right to appeal such order.

           c.   In consideration for the release of claims by the

Settlement Class, Ryan's agrees to create a settlement fund of no

less than Two Million Dollars ($2,000,000), and no more than Nine

Million  Dollars ($9,000,000), from which Eligible Class  Members

who  timely  file  a Claim Form will be paid.  The  total  amount

Ryan's  actually  ends  up  paying  will  depend  on  the  actual

participation level in the Settlement by Eligible Class  Members;

however,  in  no event will the total amount paid  by  Ryan's  to

Settlement  Class  Members  be  less  than  Two  Million  Dollars

($2,000,000),   or  exceed  Nine  Million  Dollars  ($9,000,000).

Settlement Class Members will receive a portion of the settlement

fund based upon the following formula.

           d.   Ryan's agrees to pay Settlement Class Members  an

amount   equivalent  to  $18.25  for  each  workweek  of   active

employment  with Ryan's during the Recovery Period, provided  the

participation  rate  is  such  that  the  aggregate   claims   of

Settlement  Class  Members  total  between  Two  Million  Dollars

($2,000,000) and Nine Million Dollars ($9,000,000).   The  number

of  workweeks allocated to each Settlement Class Member  will  be

determined  by Ryan's payroll records, and will be equal  to  the

number  of  workweeks for which the employee received a  paycheck

for  hours  actually worked during the Recovery Period.   In  the

event  the participation level is such that the aggregate  claims

made  by  Settlement Class Members total less  than  Two  Million

Dollars  ($2,000,000),  the Claim Shares received  by  Settlement

Class Members will exceed $18.25 per workweek.  In the event  the

participation  rate  is such that the aggregate  claims  made  by

Settlement  Class  Members total more than Nine  Million  Dollars

($9,000,000),  the  amount received by Settlement  Class  Members

will  be  less  than $18.25 per workweek.  The  amounts  paid  to

Settlement Class Members will be paid without offset or deduction

for litigation costs, attorneys' fees, enhancement awards, or the

costs  of  administering  this Settlement;  however,  appropriate

taxes will be withheld in accordance with Section 14(b).

     9.    Ryan's agrees to pay the cost of mailing the Notice to

approximately 264,000 Eligible Class Members, and agrees to  hire

and  pay  the  Settlement  Administrator  to  provide  additional

settlement  administration services and to handle  the  remaining

claims  process.   None  of the settlement  administration  costs

incurred in this case will be paid by Settlement Class Members or

deducted  from any sum Ryan's is obligated to pay as a result  of

this Settlement.

     10.  Ryan's agrees that Settlement Class Members will pay no

costs or attorneys fees from their Claim Shares or otherwise, and

that  Ryan's  will  pay costs and attorneys' fees  separate  from

amounts  received  by Settlement Class Members.   The  attorneys'

fees  and  costs  Ryan's has agreed to pay  are  based  upon  the

considerable work Class Counsel has performed, and will  continue

to  perform  into the foreseeable future, on behalf of Settlement

Class  Members.   Specifically,  Plaintiffs'  Counsel  have  been

investigating  and  working on this lawsuit since  calendar  year

1999, and have spent thousands of hours working on all aspects of

this  case,  including  successfully  opposing  a  Petition   for

Certiorari filed by Ryan's in the United States Supreme Court  in

which Ryan's asked the Supreme Court to review and overturn  this

Court's  and  the  Sixth  Circuit  Court  of  Appeals'  decisions

invalidating  arbitration  agreements  between  Ryan's/EDSI   and

Eligible  Class Members.  Based upon the work performed by  Class

Counsel  and  the success achieved on behalf of Settlement  Class

Members, Ryan's agrees to pay Class Counsel between Three and One-

Half  Million ($3,500,000) and Four and One-Half Million  Dollars

($4,500,000)1  for  all  attorneys'  fees,  costs,  and  expenses

incurred  in  connection with Class Counsels' work in  this  case

since 1999 through the conclusion of this case and the resolution

of  the settlement administration process.  Ryan's has agreed  to

pay these fees, costs and expenses in addition to amounts paid to

Settlement Class Members; therefore, no portion of the attorneys'

fees,  costs or expenses will be paid by Settlement Class Members

or deducted from the Settlement proceeds.

     11.  Ryan's agrees to pay an additional One Hundred Thousand

Dollars   ($100,000)  in  enhancement  payments   divided   among

approximately  43  Settlement Class Members who  opted-into  this

case  early  on  and  who  provided timely  assistance  and  help

essential  in  producing  a favorable result  on  behalf  of  the

Settlement  Class  by  participating in  the  discovery  process,

giving depositions under oath, providing evidentiary support  for

the  case,  submitting  declarations,  counseling  and  attending

meetings with Class Counsel, making strategic decisions on behalf

of  the  class, assisting in and/or attending mediation  sessions

with  Ryan's,  and  providing  other  necessary  assistance   and

services.   Ryan's  agrees to pay these enhancement  payments  in

addition to amounts paid to Settlement Class Members and to Class

Counsel;  therefore, no portion of the enhancement payments  will

be  paid by participants in this Settlement or deducted from  the

Settlement proceeds.

                  THE SETTLEMENT ADMINISTRATOR

     12.   a.   The Settlement Administrator shall be Garden City

Group,   Inc.,  ("Garden  City"),  P.  O.  Box  91136,   Seattle,

Washington  98111-9236.  In the event Garden City  is  unable  to

serve  as Settlement Administrator, Ryan's and/or Ryan's  Counsel

shall  select,  with the consent of Class Counsel  which  consent

shall  not unreasonably be withheld, another individual or entity

to administer the Settlement (the "Settlement Administrator").

          b.    Ryan's  shall timely provide all  records  and/or

information to the Settlement Administrator necessary  to  permit

the  expeditious  and  proper  performance  of  its  duties.   In

addition  to  any  other duties or obligations outlined  in  this

Joint  Stipulation,  the  duties of the Settlement  Administrator

shall  include:  (i)  the  mailing of Notices,  Claim  Forms  and

Questionnaires to Eligible Class Members; (ii) taking  all  steps

reasonably  necessary to ensure that each Eligible  Class  Member

timely  receives  a  Notice, Claim Form and Questionnaire;  (iii)

communicating  with  Eligible  and/or  Settlement  Class  Members

regarding  the  claims  process,  corrections  and/or  additional

information  needed  for Claim Forms, or for  any  other  reasons

deemed  reasonably necessary by the Settlement  Administrator  in

order  to  ensure that the highest percentage of  Eligible  Class

Members  receive  the Notice, Claim Form and  Questionnaire,  and

that  Eligible  Class  Members who wish to  participate  in  this

Settlement  are  permitted  to do so;  (iv)  the  utilization  of

available  methods  to  ensure the most up-to-date  and  accurate

addresses  for  Eligible  Class Members; (v)  conducting  address

searches  on all returned, undelivered mail in a timely  fashion,

and  re-mailing  Notices,  Claim  Forms  and  Questionnaires   to

Eligible  Class  Members  for  whom  addresses  are  found;  (vi)

providing   toll-free   interactive  voice  recording   telephone

support,  which  includes an option for accessing  live  operator

assisted  support  during  regular  business  hours;  (vii)   the

maintenance  of any database deemed reasonably necessary  by  the

Settlement  Administrator  to  fulfill  its  duties;  (viii)  the

receipt   and   control  of  all  returned  Claim  Forms   and/or

Questionnaires and documentation of same; (ix) the calculation of

Claim  Shares;  (x)  the timely mailing and,  if  necessary,  re-

mailing  of Claim Share checks to Settlement Class Members;  (xi)

any  and  all  other  duties as agreed  to  or  as  is  necessary

consistent  with  the  terms, purposes and goals  of  this  Joint

Stipulation.

          c.     Neither   Ryan's  nor  Plaintiffs,   nor   their

respective  Counsel,  shall  interfere  in  any  way   with   the

performance  of  the Settlement Administrator's duties  with  the

purpose  and/or  effect  of limiting or attempting  to  limit  or

interfere  with the submission or receipt of Claim  Forms  and/or

Questionnaires from Eligible Class Members, or with the inclusion

of  Eligible  Class  Members  desiring  to  participate  in  this

Settlement.   Neither Party shall engage in conduct  intended  to

materially  affect the level of participation of  Eligible  Class

Members  or the opt-in rate.  Class Counsel shall not  engage  in

any  conduct  which  could adversely and  materially  affect  the

completion  and/or  return of the Questionnaire  that  is  to  be

mailed with the Notice and Claim Forms.

          d.    All  disputes, if any, relating to the Settlement

Administrator's ability to perform its duties shall  be  referred

to  the  Court, which will have continuing jurisdiction over  the

terms and conditions of this Joint Stipulation.

            SETTLEMENT ADMINISTRATION/CLAIMS PROCESS

     13.   a.    Within  fifteen (15) business days  after  Court

approval  of  this  Joint Stipulation, the  Notice  in  the  form

attached  hereto  as Exhibit 1, Claim Form in the  form  attached

hereto  as Exhibit 2,2 and the Questionnaire in the form attached

hereto as Exhibit 3 shall be forwarded, via first class mail,  by

the  Settlement  Administrator  to  each  Eligible  Class  Member

contained   in   the   database  furnished  to   the   Settlement

Administrator  by Ryan's, which database shall include  at  least

263,844 Eligible Class Members.

           b.    The parties further agree that the Questionnaire

attached  as  Exhibit 3 will be mailed to Eligible Class  Members

with the Notice and Claim Form (Exhibits 1 and 2).  A postage pre-

paid  envelope addressed to the Settlement Administrator will  be

provided to Eligible Class Members (at Ryan's expense) for use in

mailing   completed  Questionnaires  and  Claim  Forms   to   the

Settlement  Administrator.   Ryan's agrees  that  completion  and

return  of  the  Questionnaire by Eligible  or  Settlement  Class

members   is   entirely   voluntary;  that   responses   to   the

Questionnaire cannot (and will not) be used in the administration

of   the  settlement  claims  process;  that  responses  to   the

Questionnaire  cannot  (and will not) be used  to  challenge  any

Eligible  or  Settlement  Class  Member's  choice  or  right   to

participate  in  the  Settlement;  and  that  responses  to   the

Questionnaire cannot (and will not) be used by Ryan's as a  basis

to  initiate any civil, criminal, administrative or other  action

against Eligible Class Members, Settlement Class Members,  and/or

any other individual who responds to the Questionnaire.

           c.    Within  ten (10) days following the  mailing  of

Exhibits  1-3,  the Settlement Administrator shall provide  Class

Counsel  with  a  certification verifying  the  total  number  of

     potentially recoverable workweeks set forth and/or identified on

Claim Forms mailed to Eligible Class Members.

          d.   For an Eligible Class Member to participate in the

Settlement  Class,  he  or  she must  sign,  date  and  mail  the

completed  Claim Form by postage pre-paid U.S. first class  mail,

send  it  by  fax,  or otherwise forward the Claim  Form  to  the

Settlement Administrator prior to the Claim Deadline; except that

the  Claim  Form of any Eligible Class Member which was  returned

undeliverable  after the initial mailing, and thereafter  is  re-

mailed  by  the  Settlement  Administrator  within  the  21  days

preceding the Claim Deadline, will be accepted as timely if it is

transmitted or mailed to the Settlement Administrator within  the

15-day  period  following the Claim Deadline.  The U.S.P.S.  date

stamp,  or  other  documented transmittal  date,  will  determine

timeliness of submissions.

          e.   The Settlement Administrator will run the Eligible

Class Member contact/address list through the National Change  of

Address Data Base maintained by the U.S.P.S. prior to the mailing

of  the Notices and Claim Forms.  In addition, Class Counsel will

be  permitted  to  supply  the Settlement  Administrator  updated

contact  information for the current Plaintiffs who have opted-in

to  the Action.  Ryan's will provide the Settlement Administrator

with  the social security numbers of those Eligible Class Members

whose Notices, Claim Forms and Questionnaires are returned to the

Settlement  Administrator as undeliverable by the  U.S.P.S.;  the

Settlement Administrator will utilize this additional information

in  an effort to obtain current mailing address information,  and

will then conduct one additional re-mailing of the Notices, Claim

Forms  and  Questionnaires based on corrected  mailing  addresses

resulting from this process.

          f.    The Settlement Administrator shall provide copies

of  the filed Claim Forms to Class Counsel in batches as they are

received on a weekly basis, along with any accompanying documents

or other material received from Eligible Class Members, excluding

returned Questionnaires.

          g.    Eligible or Settlement Class Members who  dispute

their dates of employment or the number of active workweeks  with

Ryan's   during  the  Recovery  Period  must  provide  convincing

documentary  or  other  evidence (other than  an  unsubstantiated

belief  or memory) that will establish that the date(s) indicated

on  the Claim Form are incorrect; otherwise, Ryan's records  will

be  presumed  to be correct.  Ryan's agrees to provide  to  Class

Counsel the actual payroll and employment records of Eligible  or

Settlement Class Members who dispute the accuracy of their  Claim

Form information, or who did not receive a Claim Form but claim a

right to participate in the Settlement.  In the event of any such

disputes,  the  Settlement Administrator  shall  make  the  final

determination,  subject to review, if necessary,  by  the  Court.

Additionally, Ryan's and/or the Settlement Administrator agree to

provide  Claim  Form  data3  to  Class  Counsel  to  verify   the

eligibility and entitlement, if any, of a) Eligible Class Members

who  contact  Class  Counsel  regarding  the  Settlement  and  b)

Settlement Class Members and/or persons who file Claim Forms.

          h.    Within  twenty  (20)  days  following  the  Claim

Deadline,  the  Settlement Administrator shall provide  to  Class

Counsel  and  Ryan's  Counsel (and the  Court,  if  requested)  a

declaration of due diligence and proof of mailing certifying  (i)

the  mailing  of  Notices,  Claim  Forms  and  Questionnaires  to

Eligible  Class  Members; (ii) attempts to locate Eligible  Class

Members;  (iii)  the  total  number  of  potentially  recoverable

workweeks  set forth and/or identified on Claim Forms  mailed  to

Eligible  Class  Members; (iv) the total  number  of  recoverable

workweeks actually claimed by Settlement Class Members;  and  (v)

that  a  spreadsheet  attached to such  declaration  contains  an

accurate listing of the identities of the Settlement Class.

          i.    As  soon as practicable following receipt of  the

Settlement Administrator's declaration described in Section 13(h)

and prior to the mailing of settlement checks to Settlement Class

Members,  the Parties shall file the Final Order of Dismissal  in

the  form  attached hereto as Exhibit 4, which shall  attach  and

incorporate  the spreadsheet described in Section 13(h)(v)  which

sets  forth the identities of the Settlement Class Members  whose

claims are being dismissed with prejudice.

              PAYMENTS TO SETTLEMENT CLASS MEMBERS

     14.    a.     On   the  Disbursement  Date,  the  Settlement

Administrator shall send settlement checks constituting  the  net

(after  withholding)  Claim  Share amounts  to  Settlement  Class

Members via first class mail.  Such settlement checks shall  note

on their face that they are void if not cashed within ninety (90)

days of issuance.

          b.   The Parties agree that IRS Forms W-2 and 1099 will

be   distributed  to  Settlement  Class  Members  reflecting  the

payments they receive under the Settlement, and that one-half  of

the settlement sum received by such Settlement Class Members will

be  considered as taxable wages from which withholdings  will  be

made,  while  the  remaining half will be  considered  liquidated

damages from which no withholding will be made.

          c.   In the event settlement checks are returned to the

Settlement   Administrator  with  a   forwarding   address,   the

Settlement  Administrator shall promptly re-mail such  checks  to

     Settlement  Class Members at the newly identified forwarding

addresses.   If unclaimed checks representing claimed  settlement

funds   remain   even  after  such  re-mailing,  the   Settlement

Administrator  shall  promptly notify Class  Counsel  as  to  the

identity  of  all  Settlement Class Members  who  have  unclaimed

checks.   Class  Counsel  shall have forty-five  (45)  days  from

notification of such unclaimed checks within which to provide the

Settlement  Administrator with corrected  mailing  addresses  for

such   unclaimed  checks.   The  Settlement  Administrator  shall

conduct  one additional remailing of unclaimed settlement  checks

for  each  Settlement Class Member that Class Counsel provides  a

corrected mailing address. If the Settlement Class Member  cannot

thereafter  be  located, or Settlement Class Member  Claim  Share

checks  remain  uncashed  after  they  have  expired,  then   the

Settlement  Class  Member's Claim Share shall  be  forfeited  and

Class  Counsel  shall make a distribution of the Claim  Share  to

National CASA (Court Appointed Special Advocates for Children), a

duly   registered  Section  501(c)(3)  charity   and   non-profit

organization.

            d.     As   soon   as  practicable,  the   Settlement

Administrator  shall provide to Class Counsel and Ryan's  Counsel

(and  the  Court,  if  requested)  a  declaration  verifying  the

identities of Settlement Class Members to whom settlement  checks

were  mailed,  the  date(s) of mailing, and  the  amount  of  the

checks.

     PAYMENT OF ENHANCEMENT AWARDS AND COSTS/ATTORNEYS FEES

     15.    a.     On   the  Disbursement  Date,  the  Settlement

Administrator  and/or Ryan's shall forward to  the  attention  of

Class   Counsel  separate  checks  constituting  the  enhancement

payments described in Section 11 (totaling $100,000) made payable

to  the  approximately 43 recipients thereof  in  amounts  to  be

provided  by Class Counsel.  These payments shall be in  addition

to  any  Claim Share the recipients of such enhancement  payments

may  receive  based  on his or her status as a  Settlement  Class

Member.

           b.    Class  Counsel shall be solely  responsible  for

distributing the checks constituting enhancement payments to  the

recipients  thereof.   If a recipient of an  enhancement  payment

cannot be located by Class Counsel within a reasonable period  of

time, then his or her enhancement payment shall be forfeited, and

Class   Counsel  shall  make  a  cy-pres  distribution  of   such

enhancement  payment  to National CASA (Court  Appointed  Special

Advocates  for  Children),  a duly registered  Section  501(c)(3)

charity and non-profit organization.

           c.    The  Parties agree that IRS Forms 1099  will  be

distributed to the recipients of enhancement payments  reflecting

the  amount  of enhancement payments made to them;  none  of  the

enhancement  payments shall be treated as damages for  wages  and

shall be subject to 1099 reporting only.  IRS Forms 1099 will  be

sent  to  Class  Counsel  reflecting  the  amount  of  costs  and

attorneys'  fees  paid to Class Counsel by Ryan's  in  connection

with  this  settlement; the Parties acknowledge  and  agree  that

these  costs and attorneys' fees are being paid directly to Class

Counsel in lieu of any statutory claim that the Settlement  Class

Members  might  have for the recovery or reimbursement  of  their

reasonable attorneys' fees and costs.

            d.     On   the  Disbursement  Date,  the  Settlement

Administrator and/or Ryan's shall pay Class Counsel's  attorneys'

fees, costs and expenses (collectively, the "Attorneys' Fees") in

an amount determined in accordance with Section 10.

          e.   Although the Attorneys' Fees will be paid directly

to  Class  Counsel by Ryan's and/or the Settlement Administrator,

separate  from  the  Claim Shares paid to the  Settlement  Class,

Ryan's  has been advised by its tax advisors that it must  report

the  Attorneys'  Fees  paid to Class Counsel  as  income  to  the

Settlement  Class Members.  Therefore, Ryan's will  send  a  Form

1099  to  the IRS and to each Settlement Class Member  reflecting

that Member's pro rata share of the total Attorneys' Fees paid to

Class Counsel by Ryan's; each Settlement Class Member's pro  rata

share  shall  be  determined by multiplying the total  Attorneys'

Fees  paid to Class Counsel by a fraction, the numerator of which

shall  be  the  dollar amount of the particular Settlement  Class

Member's  Claim  Share, and Enhancement Award, if  any,  and  the

denominator of which is the sum of the total amount of all  Claim

Shares  paid  to the Settlement Class pursuant to  Section  8(d),

plus  the  $100,000 Enhancement Award payments paid  pursuant  to

Section  15(a).   This Form 1099 shall be separate  from  and  in

addition  to  the Form 1099 sent to the Settlement Class  Members

pursuant  to Section 14(b), although they may be mailed together,

and  shall  be  accompanied  by the  letter  from  Class  Counsel

attached hereto as Exhibit 7.

                      RELEASE BY THE CLASS

     16.   Contingent  upon the performance  by  Ryan's  and  the

Settlement   Administrator  of  their   respective   undertakings

pursuant to this Joint Stipulation, including but not limited  to

the  payment to the Settlement Class Members of their  respective

Claim Shares, all claims for minimum wages and/or overtime during

the  Recovery  Period for all Settlement Class  Members,  whether

based  on  federal  or state laws (as well as  derivative  claims

related thereto such as attorneys' fees, liquidated damages,  and

interest), are being released as part of the Settlement, and  the

claims  asserted in the Action will be dismissed  on  the  merits

with prejudice.  All Settlement Class Members will thereafter  be

barred  from instituting or prosecuting any other action  against

Ryan's asserting or relating to any of the released claims.   The

release  does not apply to unrelated claims, such as  claims  for

wrongful  discharge, retaliation, workers compensation, or  other

claims  other  than those for unpaid overtime  and  minimum  wage

claims  (as  well  as derivative claims related thereto  such  as

attorneys' fees, liquidated damages, and interest) arising during

the  Recovery Period of November 12, 1999 to August 2, 2005;  nor

does  it apply to any claims pertaining to events occurring after

the Recovery Period.

          DUTIES OF THE PARTIES PRIOR TO COURT APPROVAL

     17.   Promptly  upon the Parties' execution  of  this  Joint

Stipulation, the Parties shall apply to the Court for  the  entry

of an Order, attached as Exhibit 6, seeking the following:

          a.    Approval  of this Joint Stipulation  and  of  the

Settlement described herein.

          b.   Approval  as  to form and content of the  proposed

               Notice attached hereto as Exhibit 1.

          c.   Approval  as  to form and content of the  proposed

               Claim Form attached hereto as Exhibit 2.

          d.   Approval  as  to form and content of the  proposed

               Questionnaire attached hereto as Exhibit 3.

          e.   A  direction  to mail the Notice, Claim  Form  and

               Questionnaire  by  first class  mail  to  Eligible

               Class Members.

            NO RETALIATION OR INTIMIDATION PERMITTED

     18.   Ryan's has agreed: that it will not contact  employees

eligible  to  participate in this Settlement for the  purpose  of

attempting  to influence them or to cause them not to participate

in  this Settlement; that it will not take any adverse employment

action,  or  otherwise target, retaliate or discriminate  against

any  employee who elects or indicates an intention to participate

in  this  Settlement because of their decision to participate  or

not  participate  in  this Settlement;  and  that  its  officers,

directors,  management employees and/or agents,  will  use  their

best   efforts  neither  to  make  nor  cause  to  be  made   any

communication,  either directly or indirectly,  whether  written,

verbal,  electronic,  or  otherwise,  to  any  Ryan's  management

personnel  which would permit the identification of any  employee

who  elects or declines to participate in the Settlement.  Ryan's

will  treat  the  decision of individual employees  to  elect  or

decline  to  participate in the Settlement as  confidential,  and

will disclose such decision only on a "need to know" basis, or as

may be required by law.

                       PARTIES' AUTHORITY

     19.   The signatories hereto hereby represent that they  are

fully  authorized to enter into this Joint Stipulation  and  bind

Ryan's and Plaintiffs to the terms and conditions hereof.

                     MUTUAL FULL COOPERATION

     20.   Ryan's  and Plaintiffs agree to cooperate  fully  with

each  other  to  accomplish the terms of this Joint  Stipulation,

including but not limited to, executing such documents and taking

such other action as may reasonably be necessary to implement the

terms of this Joint Stipulation.  Ryan's and Plaintiffs shall use

their  best  efforts  to  effectuate the goals,  obligations  and

duties  contemplated in this Joint Stipulation, or  as  otherwise

required by the Court.  As soon as practicable after execution of

this Joint Stipulation, both Ryan's and Plaintiffs will take  all

reasonably necessary steps to secure the Court's approval of this

Joint  Stipulation.   Further, Ryan's  and  Plaintiffs  agree  to

cooperate in the settlement administration and claims process.

                       ENFORCEMENT ACTIONS

     21.  In the event that Ryan's or any Settlement Class Member

or  Plaintiff institutes any legal action, arbitration  or  other

proceeding  against the other to enforce the provisions  of  this

Joint  Stipulation or to declare rights and/or obligations  under

this Joint Stipulation, the successful litigant shall be entitled

to  recover  from the unsuccessful litigant reasonable attorneys'

fees  and  costs,  including  expert  witness  fees  incurred  in

connection  with  any enforcement action.  In  the  event  Ryan's

fails  to timely pay or fund the monies it is required to pay  by

terms of this Joint Stipulation, Plaintiffs may, at their option,

declare all agreements or Joint Stipulations regarding settlement

between the Parties null and void or, alternatively, enforce  the

provisions of this Joint Stipulation.

                          CONSTRUCTION

     22.    Ryan's  and  Plaintiffs  agree  that  the  terms  and

conditions  of this Joint Stipulation are the result of  lengthy,

intensive  arms-length negotiations between them, and  that  this

Joint  Stipulation shall not be construed in favor of or  against

either  Ryan's  or Plaintiffs by reason of the  extent  to  which

they,  or  their respective counsel, participated in the drafting

of this Joint Stipulation.

                  CAPTIONS AND INTERPRETATIONS

     23.   Paragraph  titles  or captions  contained  herein  are

inserted as a matter of convenience and for reference, and in  no

way  define,  limit, extend or describe the scope of  this  Joint

Stipulation  or any provision hereof.  Each term  of  this  Joint

Stipulation is contractual and not merely a recital.

                          MODIFICATION

     24.  This Joint Stipulation may not be changed, altered,  or

modified,  except in writing and signed by Ryan's and Plaintiffs,

or  by  their  respective  duly authorized  agents.   This  Joint

Stipulation  may  not  be  discharged except  by  performance  in

accordance  with its terms or by a writing signed by  Ryan's  and

Plaintiffs, or by their respective duly authorized agents.

               INCORPORATION OF SETTLEMENT LETTER

     27.  This Joint Stipulation incorporates, and is intended to

be  read  consistently and in pari materia with,  the  terms  set

forth  in  the  Parties'  settlement  confirmation  letter  dated

February  7, 2006 (and Exhibits A-C which accompany it), attached

hereto as Exhibit 5.

                       BINDING ON ASSIGNS

      28.  This Joint Stipulation shall be binding upon and inure

to  the  benefit  of Ryan's and Plaintiffs and  their  respective

heirs,   trustees,  executors,  administrators,  successors   and

assigns.

                          COUNTERPARTS

     29.  This Joint Stipulation may be executed in counterparts,

including   fax  counterparts,  and  when  at  least   one   such

counterpart has been signed and delivered, each counterpart shall

be deemed an original, and, when taken together with other signed

counterparts, shall constitute one Joint Stipulation, which shall

be binding upon and effective as to Ryan's and Plaintiffs.

DATED:  March 17, 2006        M. REID ESTES, JR.
                              STEWART, ESTES & DONNELL

                              By: /s M. Reid Estes, Jr.
                                  M. Reid Estes, Jr.

                              Attorneys  for  the  Representative
                              Plaintiffs
                              and the Class

DATED:    March 17, 2006      E. GRANTLAND BURNS, ESQ.
                              NEXSEN PRUET, LLC

                              By:  /s  E.  Grantland Burns  (With
                              Permission)
                                   E. Grantland Burns, Esq.

                              James M. Coleman, Esq.
                              Constangy, Brooks & Smith, LLC

                              William A. Blue, Esq.
                              Constangy, Brooks & Smith, LLC

                              Attorneys for the Defendant
_______________________________
1  The amount paid as costs/attorneys' fees to Class Counsel will
be  determined  based  upon the level of  Eligible  Class  Member
participation  and  in  accordance with the  Parties'  settlement
confirmation  letter dated February 7, 2006, attached  hereto  as
Exhibit 5.
2   The  Parties  anticipate  that  modest,  mutually  consensual
revisions  to these Exhibits may be necessary to conform  to  the
realities  of, or changes in, the claim process as  suggested  by
the Settlement Administrator or otherwise.
3   "Claim  Form  data" refers to the payroll  and/or  employment
history  in  the  format  provided by Ryan's  to  the  Settlement
Administrator.

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