Document:

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”)
is dated as of September     , 2005, by and between
Meadows Springs, Inc., a Nevada corporation (the “Company”)
and Apollo Resources International, Inc., a Utah corporation (“Apollo”).

 

WHEREAS, Apollo owns 8,000
shares of the issued and outstanding common stock of Earth Biofuels, Inc.,
a Mississippi corporation (“Earth Biofuels”),
constituting 80% of the outstanding common stock of Earth Biofuels; and

 

WHEREAS, the Company has
expressed a desire to acquire all of the issued and outstanding common stock of
Earth Biofuels owned by Apollo, subject to the terms and conditions set forth
in this Agreement; and

 

WHEREAS, in consideration
for such purchase, the Company has offered to sell and issue to Apollo an
aggregate of 21,000,000 shares of the common stock of the Company.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for
other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Company and Apollo agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1        Definitions.  In addition to the terms defined elsewhere in
this Agreement, for all purposes of this Agreement, the following terms have the
meanings indicated in this Section 1.1:

 

“Action”
shall have the meaning ascribed to such term in Section 3.1(h).

 

“Affiliate”
means any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a
Person as such terms are used in and construed under Rule 144.

 

“Earth
Biofuels Common Stock” means the 8,000 shares of common stock of
Earth Biofuels, $1.00 par value per share, owned by Apollo.

 

“Closing”
means the closing of the purchase and sale of the Company Common Stock and the Earth
Biofuels Common Stock pursuant to Section 2.1.

 

“Closing
Date” means the date of the Closing pursuant to Section 2.1
hereof.

 

“Commission”
means the Securities and Exchange Commission.

 

“Company Common
Stock” means the common stock of the Company, $0.001 par value
per share, to be issued and sold hereunder.

 

 

“Confidential
Information” means all information concerning this Agreement
(including, without limitation, in any exhibits or schedules hereto), the other
Transaction Documents, the transactions contemplated hereby and thereby, other
confidential information regarding the Company or Earth Biofuels delivered in
connection with the transactions and any information provided in response to
any notice requirement or other disclosure delivered pursuant to the
Transaction Documents.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in
Section 3.1(l).

 

“Liens”
means a lien, charge, security interest, encumbrance or other restriction.

 

“Material
Adverse Effect” shall have the meaning ascribed to such term in Section 3.1(a).

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(j).

 

“Person”
means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or subdivision thereof) or other entity
of any kind.

 

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same
effect as such Rule.

 

“SEC Documents”
shall mean the SEC Reports, the press releases of the Company and registration
statements of the Company filed with the Commission pursuant to the Securities
Act (including any amendments thereto).

 

“SEC
Reports” shall have the meaning ascribed to such term in Section 3.1(g).

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Trading
Day” means (i) a day on which the Company Common Stock is
traded on the over-the-counter market, as reported by the OTC Bulletin Board,
or (ii) if the Company Common Stock is not quoted on the OTC Bulletin
Board, a day on which the Company Common Stock is quoted in the over-the-counter
market as reported by the National Quotation Bureau Incorporated (or any
similar organization or agency succeeding its functions of reporting prices);
provided, that in the event that the Company Common Stock is not listed or
quoted as set forth in (i) or (ii) hereof, then Trading Day shall
mean a Business Day.

 

“Trading
Market” means the following service on which the Common Stock is
quoted for trading on the date in question: the American Stock Exchange, the
New York Stock Exchange, the Nasdaq National Market or the Nasdaq SmallCap
Market.

 

“Transaction
Documents” means this Agreement and any other documents or
agreements executed in connection with the transactions contemplated hereunder.

 

2

 

ARTICLE II.

PURCHASE AND SALE

 

2.1        Closing.
 Upon satisfaction of the conditions set
forth in Section 2.2, the Company agrees to sell and issue 21,000,000
shares of Company Common Stock to Apollo, in consideration of the sale to the
Company of the Earth Biofuels Common Stock. 
Apollo hereby agrees to sell to the Company the shares of Earth Biofuels
Common Stock, comprising in total 80% of the outstanding shares of common stock
of Earth Biofuels.  The closing of the
sale and purchase of the shares of Company Common Stock and the shares of Earth
Biofuels Common Stock under this Agreement (the “Closing”)
shall occur at the offices of Scheef & Stone, LLP, located at 5956
Sherry Lane, Suite 1400, Dallas, Texas 75225, or at such other location as
the parties shall mutually agree, on September     ,
2005 (the “Closing Date”).  

 

2.2        Closing
Conditions.

 

(a)         Conditions
to Apollo’s Obligations.  The
obligation of Apollo to purchase the shares of Company Common Stock at the
Closing is subject to the fulfillment of the following conditions, any of which
may be waived by Apollo:

 

(i)                At
the Closing, the Company shall deliver or cause to be delivered to Apollo, this
Agreement duly executed by the Company;

 

(ii)               All
representations and warranties of the Company contained herein, shall remain
true and correct in all material respects as of the Closing Date.

 

(iii)              As
of the Closing Date, there shall have been no Material Adverse Effect with
respect to the Company since the date hereof.

 

(b)         Conditions
to Company’s Obligations.  The
obligation of the Company to sell and issue the Company Common Stock at the
Closing is subject to the fulfillment to the satisfaction of the Company, at or
prior to the Closing Date, of the following conditions, any of which may be
waived by the Company:

 

(i)                At
the Closing, Apollo shall deliver or cause to be delivered to the Company, this
Agreement duly executed by Apollo;

 

(ii)               All
representations and warranties of Apollo contained herein shall remain true and
correct in all material respects as of the Closing Date.

 

(iii)              As
of the Closing Date, there shall have been no Material Adverse Effect with
respect to Earth Biofuels since the date hereof.

 

3

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1        Representations and Warranties of the
Company.  The Company hereby makes
the following representations and warranties as of the date hereof to Apollo:

 

(a)         Organization
and Qualification.  The Company is an
entity duly incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation, with the
requisite power and authority to own and use its properties and assets and to
carry on its business as currently conducted. 
The Company is not in violation of any of the provisions of its
certificate or articles of incorporation or bylaws.  The Company is duly qualified to conduct business
and is in good standing as a foreign corporation or other entity in each
jurisdiction in which the nature of the business conducted or property owned by
it makes such qualification necessary, except where the failure to be so
qualified or in good standing, as the case may be, would not have or reasonably
be expected to result in (i) a material adverse effect on the legality,
validity or enforceability of any Transaction Document or (ii) a material
adverse effect on the results of operations, assets, business or financial
condition of the Company (either of (i) or (ii), a “Material
Adverse Effect”).

 

(b)         Authorization;
Enforcement.  The Company has the
requisite corporate power and authority to enter into and to consummate the
transactions contemplated by each of the Transaction Documents and otherwise to
carry out its obligations thereunder. 
The execution and delivery of each of the Transaction Documents by the
Company and the consummation by it of the transactions contemplated thereby
have been duly authorized by all necessary action on the part of the Company
and no further action is required by the Company in connection therewith.  Each Transaction Document has been (or upon
delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof, assuming the valid execution and delivery
thereof by Apollo, will constitute the valid and binding obligation of the
Company enforceable against the Company in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ and contracting parties rights generally.

 

(c)         No
Conflicts.  The execution, delivery
and performance of the Transaction Documents by the Company and the
consummation by the Company of the transactions contemplated thereby do not and
will not (i) conflict with or violate any provision of the Company’s
certificate or articles of incorporation or bylaws, or (ii) conflict with,
or constitute a default (or an event that with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation (with or without notice, lapse of time
or both) of, any agreement, credit facility, debt or other instrument
(evidencing a Company debt) to which the Company is a party or by which any
property or asset of the Company is bound or affected,

 

4

 

or (iii) result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or
governmental authority to which the Company is subject (including federal and
state securities laws and regulations), or by which any property or asset of
the Company is bound or affected; except in the case of each of clauses (ii) and
(iii), such as would not have or reasonably be expected to result in a Material
Adverse Effect.

 

(d)         Filings,
Consents and Approvals.  The Company
is not required to obtain any consent, waiver, authorization or order of, give
any notice to, or make any filing or registration with, any court or other
federal, state, local or other governmental authority or other Person in
connection with the execution, delivery and performance by the Company of the
Transaction Documents, other than (a) any filing with the Commission, and
applicable Blue Sky filings, and (b) such other filings as may be required
following the Closing Date under the Securities Act, the Exchange Act and state
corporate law.

 

(e)         Issuance
of the Company Common Stock.  The shares
of Company Common Stock are duly authorized and, when issued and paid for in
accordance with the Transaction Documents, will be duly and validly issued,
fully paid and nonassessable, free and clear of all Liens.

 

(f)          Capitalization.  The capitalization of the Company is as
described in the Company’s most recent periodic report filed with the
Commission.  No Person has any right of
first refusal, preemptive right, right of participation, or any similar right
to participate in the transactions contemplated by the Transaction Documents,
which right has not been complied with prior to the Closing.  The issuance and sale of the Company Common
Stock will not obligate the Company to issue shares of its common stock or
other securities to any Person and will not result in a right of any holder of
Company securities to adjust the exercise, conversion, exchange or reset price
under such securities.

 

(g)         SEC
Reports; Financial Statements.  To
the best of the Company’s knowledge, the Company has filed all reports required
to be filed by it under the Securities Act and the Exchange Act, including
pursuant to Section 13(a) or 15(d) of the Exchange Act, for the
two years preceding the date hereof (or such shorter period as the Company was
required by law to file such material) (the foregoing materials, including the
exhibits thereto, being collectively referred to herein as the “SEC Reports”) on a timely basis or
has received a valid extension of such time of filing and has filed any such
SEC Reports prior to the expiration of any such extension.  To the best of the Company’s knowledge, as of
their respective dates, the SEC Reports complied in all material respects with
the requirements of the Securities Act and the Exchange Act and the rules and
regulations of the Commission promulgated thereunder, and none of the SEC
Reports, when filed, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading.  The
financial

 

5

 

statements of the Company included in the SEC Reports comply in all
material respects with applicable accounting requirements and the rules and
regulations of the Commission with respect thereto as in effect at the time of
filing.

 

(h)         Litigation.  There is no action, suit, inquiry, notice of
violation, proceeding or investigation pending or, to the knowledge of the
Company, threatened against or affecting the Company or any of its properties
before or by any court, arbitrator, governmental or administrative agency or
regulatory authority (federal, state, county, local or foreign) (collectively,
an “Action”).  Neither the Company, nor any director or
officer thereof, is or has been the subject of any Action involving a claim of
violation of or liability under federal or state securities laws or a claim of
breach of fiduciary duty.  There has not
been, and to the knowledge of the Company, there is not pending or
contemplated, any investigation by the Commission involving the Company or any
current or former director or officer of the Company.

 

(i)          Compliance.  The Company (i) is not in default under
or in violation of (and no event has occurred that has not been waived that,
with notice or lapse of time or both, would result in a default by the Company
under), nor has the Company received notice of a claim that it is in default
under or that it is in violation of, any indenture, loan or credit agreement or
any other agreement or instrument to which it is a party or by which it or any
of its properties is bound (whether or not such default or violation has been
waived), (ii) is not in violation of any order of any court, arbitrator or
governmental body, or (iii) is not in violation of any statute, rule or
regulation of any governmental authority, including without limitation all
foreign, federal, state and local laws applicable to its business.

 

(j)          Regulatory
Permits.  The Company possesses all
certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct its
business (“Material Permits”).

 

(k)         Title to
Assets.  The Company has good and
marketable title in fee simple to all real property owned by it that is
material to the businesses of the Company and good and marketable title to all
personal property owned by it that is material to the business of the Company,
free and clear of all Liens.  To the
knowledge of the Company, any real property and facilities held under lease by
the Company are held by it under valid, subsisting and enforceable leases with
which the Company is in compliance.

 

(l)          Patents
and Trademarks.  To the knowledge of
the Company (without having conducted a patent search), the Company has, or has
rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, copyrights, licenses and other
similar rights (collectively, the “Intellectual Property
Rights”) that are necessary or material for use in connection
with its business.  The Company has not received
a written

 

6

 

notice that the Intellectual Property Rights used by the Company
violate or infringe upon the rights of any Person.  The Company has taken all steps reasonably
required in accordance with sound business practice and sound business judgment
to establish and preserve its ownership of such Intellectual Property.

 

(m)        Insurance.  The Company is insured by insurers of
recognized financial responsibility against such losses and risks and in such
amounts as are prudent and customary in the businesses in which the Company is
engaged.  The Company has no reason to
believe that it will not be able to renew its existing insurance coverage as
and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business without a significant
increase in cost.

 

(n)         Internal
Accounting Controls.  The Company
maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with GAAP and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management’s general or specific
authorization, and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences. The Company has established disclosure
controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)
for the Company and designed such disclosure controls and procedures to ensure
that material information relating to the Company is made known to the
certifying officers by others within the Company, particularly during the
period in which the Company’s Form 10-K or 10-Q, as the case may be, is
being prepared.  The Company’s certifying
officers have evaluated the effectiveness of the Company’s controls and
procedures as of a date within 90 days prior to the filing date of the Form 10-KSB
for the year ended June 30, 2005 (such date, the “Evaluation
Date”).  The Company
presented in its most recently filed Form 10-KSB the conclusions of the
certifying officers about the effectiveness of the disclosure controls and
procedures based on their evaluations as of the Evaluation Date.  Since the Evaluation Date, there have been no
significant changes in the Company’s internal controls (as such term is defined
in Item 307(b) of Regulation S-K under the Exchange Act) or, to the
Company’s knowledge, in other factors that could significantly affect the
Company’s internal controls.

 

(o)         Certain
Fees.  No brokerage or finder’s fees
or commissions are or will be payable by the Company to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or
other Person with respect to the transactions contemplated by this
Agreement.  The Purchasers shall have no
obligation with respect to any fees or with respect to any claims made by or on
behalf of other Persons for fees of a type contemplated in this Section that
may be due under any agreement or arrangement entered into

 

7

 

by the Company in connection with the transactions contemplated by this
Agreement.

 

(p)         Listing
and Maintenance Requirements.  The
Company has not, in the 12 months preceding the date hereof, received notice
from the OTC Bulletin Board to the effect that the Company is not in compliance with the requirements of
the OTC Bulletin Board to
maintain quotation or listing of the Common Stock.

 

3.2        Representations and Warranties of Apollo.  Apollo hereby represents and warrants as of
the date hereof and as of the Closing Date to the Company as follows:

 

(a)         Organization
and Authority of Apollo.  Apollo is
an entity duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization with the requisite corporate power and authority to enter into and to
consummate the transactions contemplated by the Transaction Documents and
otherwise to carry out its obligations thereunder.  The
execution and delivery of each of the Transaction Documents by Apollo and the
consummation by it of the transactions contemplated thereby have been duly
authorized by all necessary action on the part of Apollo and no further action
is required by Apollo in connection therewith. 
Each Transaction Document has been (or upon delivery will have been)
duly executed by Apollo and, when delivered in accordance with the terms
hereof, assuming the valid execution and delivery thereof by the Company, will
constitute the valid and binding obligation of Apollo enforceable against
Apollo in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting enforcement of creditors’ and
contracting parties rights generally.

 

(b)         Investment
Intent.  Apollo understands that the shares
of Company Common Stock are “restricted securities” and have not been
registered under the Securities Act or any applicable state securities law and Apollo
is acquiring the shares of Company Common Stock as principal for its own
account for investment purposes only and not with a view to or for distributing
or reselling such shares of Company Common Stock or any part thereof, has no
present intention of distributing any of such shares of Company Common Stock
and has no arrangement or understanding with any other persons regarding the
distribution of such shares of Company Common Stock (this representation and
warranty not limiting Apollo’s right to sell the shares of Company Common Stock
in compliance with applicable federal and state securities laws).  Apollo does not have any agreement or
understanding, directly or indirectly, with any Person to distribute any of the
shares of Company Common Stock.

 

(c)         Organization and Qualification of Earth
Biofuels.  Earth Biofuels is an entity duly incorporated
or otherwise organized, validly existing and in good standing under the laws of
the jurisdiction of its incorporation, with the requisite power and authority
to own and use its properties and assets and to

 

8

 

carry on its business as currently conducted.  Earth Biofuels is not in violation of any of
the provisions of its certificate or articles of incorporation or bylaws.  Earth Biofuels is duly qualified to conduct
business and is in good standing as a foreign corporation or other entity in
each jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, except where the failure to be
so qualified or in good standing, as the case may be, would not have or
reasonably be expected to result in) a material adverse effect on the results
of operations, assets, business or financial condition of Earth Biofuels.

 

(d)         No Conflicts.  The
execution, delivery and performance of the Transaction Documents by Apollo and
the consummation by Apollo of the transactions contemplated thereby do not and
will not (i) conflict with or violate any provision of Apollo’s certificate
or articles of incorporation or bylaws, or (ii) conflict with, or
constitute a default (or an event that with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation (with or without notice, lapse of time
or both) of, any agreement, credit facility, debt or other instrument
(evidencing a Apollo debt) to which Apollo is a party or by which any property
or asset of Apollo is bound or affected, or (iii) result in a violation of
any law, rule, regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which Apollo is subject,
or by which any property or asset of Apollo is bound or affected.

 

(e)         Filings, Consents and Approvals.  Apollo
is not required to obtain any consent, waiver, authorization or order of, give
any notice to, or make any filing or registration with, any court or other
federal, state, local or other governmental authority or other Person in
connection with the execution, delivery and performance by Apollo of the
Transaction Documents, other than (a) any filing with the
Commission and (b) such other filings as may be required following the
Closing Date under the Securities Act and the Exchange Act.

 

(f)          Earth Biofuels Common Stock.  The
shares of Earth Biofuels Common Stock are duly and validly issued, fully paid
and nonassessable, free and clear of all Liens.

 

(g)         Capitalization of Earth Biofuels.  The
capitalization of Earth Biofuels is as set forth in its articles of
incorporation.  No Person has any right
of first refusal, preemptive right, right of participation, or any similar
right to participate in the transactions contemplated by the Transaction
Documents, which right has not been complied with prior to the Closing.

 

(h)         Litigation.  There is no Action which
materially and adversely affects or challenges the legality, validity or enforceability
of any of the Transaction Documents or the Earth Biofuels Common Stock.  Neither Earth Biofuels, nor any director or
officer thereof, is or has been the subject of any

 

9

 

Action involving a claim of violation of or
liability under federal or state securities laws or a claim of breach of
fiduciary duty.

 

(i)          Labor Relations.  No
material labor dispute exists or, to the knowledge of Apollo, is imminent with
respect to any of the employees of Earth Biofuels.

 

(j)          Compliance.  Earth Biofuels (i) is not
in default under or in violation of (and no event has occurred that has not
been waived that, with notice or lapse of time or both, would result in a
default by Earth Biofuels under), nor has Earth Biofuels received notice of a
claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a
party or by which it or any of its properties is bound (whether or not such
default or violation has been waived), (ii) is not in violation of any
order of any court, arbitrator or governmental body, or (iii) is not in
violation of any statute, rule or regulation of any governmental
authority, including without limitation all foreign, federal, state and local
laws applicable to its business.

 

(k)         Regulatory Permits.  Earth
Biofuels possesses all Material Permits, and Earth Biofuels has not received
any notice of proceedings relating to the revocation or modification of any
Material Permit.

 

(l)          Title to Assets.  Earth
Biofuels has good and marketable title in fee simple to all real property owned
by it that is material to the businesses of Earth Biofuels and good and
marketable title to all personal property owned by it that is material to the
business of Earth Biofuels, free and clear of all Liens, except for Liens as do
not materially affect the value of such property and do not materially
interfere with the use made and proposed to be made of such property by Earth
Biofuels and Liens for the payment of federal, state or other taxes, the
payment of which is neither delinquent nor subject to penalties.  To the knowledge of Apollo, any real property
and facilities held under lease by Earth Biofuels are held by it under valid,
subsisting and enforceable leases with which Earth Biofuels is in compliance.

 

(m)        Patents and Trademarks.  To
the knowledge of Apollo (without having conducted a patent search), Earth
Biofuels has, or has rights to use, all Intellectual Property Rights that are necessary or material for use in
connection with its business.  Neither Apollo
nor Earth Biofuels has received a written notice that the Intellectual Property
Rights used by Earth Biofuels violate or infringe upon the rights of any
Person.  Earth Biofuels has taken all
steps reasonably required in accordance with sound business practice and sound
business judgment to establish and preserve its ownership of such Intellectual
Property.

 

(n)         Insurance.  Earth Biofuels is insured by
insurers of recognized financial responsibility against such losses and risks
and in such

 

10

 

amounts as are prudent and customary in the
businesses in which Earth Biofuels is engaged. 
Apollo has no reason to believe that Earth Biofuels will not be able to
renew its existing insurance coverage as and when such coverage expires or to
obtain similar coverage from similar insurers as may be necessary to continue
its business without a significant increase in cost.

 

(o)         Certain Fees.  No
brokerage or finder’s fees or commissions are or will be payable by Apollo to
any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions
contemplated by this Agreement.  The Company
shall have no obligation with respect to any fees or with respect to any claims
made by or on behalf of other Persons for fees of a type contemplated in this Section that
may be due under any agreement or arrangement entered into by Apollo in connection
with the transactions contemplated by this Agreement.

 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1        Transfer
Restrictions.

 

(a)         The
Company Common Stock may only be disposed of in compliance with state and
federal securities laws.  In connection
with any transfer of Company Common Stock other than pursuant to a sale under
an effective registration statement, the Company may require the transferor
thereof to provide to the Company an opinion of counsel, the form and substance
of which opinion shall be reasonably satisfactory to the Company, to the effect
that such transfer does not require registration of such transferred Company
Common Stock under the Securities Act.

 

(b)         Apollo
agrees to the imprinting of a legend on the Company Common Stock substantially
in the following form:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”).  THE SECURITIES MAY NOT BE
SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS REGISTERED UNDER THE
SECURITIES ACT AND QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS OR UNLESS
SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION
REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS AND THE COMPANY RECEIVES AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND QUALIFICATION
ARE NOT REQUIRED.

 

11

 

ARTICLE V.

MISCELLANEOUS

 

5.1        Fees
and Expenses.  Except as otherwise
set forth in this Agreement, each party shall pay the fees and expenses of its
advisers, counsel, accountants and other experts, if any, and all other
expenses incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement.

 

5.2        Entire
Agreement.  The Transaction
Documents, together with the exhibits and schedules thereto, contain the entire
understanding of the parties with respect to the subject matter hereof and
supersede all prior agreements and understandings, oral or written, with
respect to such matters, which the parties acknowledge have been merged into
such documents, exhibits and schedules.

 

5.3        Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) the
date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified on the signature pages attached
hereto prior to 5 p.m. (Dallas, Texas time) on a Trading Day, (b) the
next Trading Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified on
the signature pages attached hereto on a day that is not a Trading Day or
later than 5 p.m. (Dallas, Texas time) on any Trading Day, (c) the
Trading Day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service, or (d) upon actual receipt by the
party to whom such notice is required to be given.  The address for such notices and
communications shall be as set forth on the signature pages attached
hereto.

 

5.4        Amendments;
Waivers.  Without the written consent
of each of the parties hereto, the terms of this Agreement may not be waived or
amended.  No waiver of any default with
respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof,
nor shall any delay or omission of either party to exercise any right hereunder
in any manner impair the exercise of any such right.

 

5.5        Construction.  The headings herein are for convenience only,
do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.  The
language used in this Agreement will be deemed to be the language chosen by the
parties to express their mutual intent, and no rules of strict
construction will be applied against any party.

 

5.6        Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and permitted
assigns.  Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies,
obligations or liabilities under or by reason of this Agreement, except as
expressly provided by this Agreement.

 

5.7        Governing
Law.  All questions concerning the
construction, validity, enforcement and interpretation of the Transaction
Documents shall be governed by and

 

12

 

construed and enforced in accordance with the internal laws of the
State of Texas, without regard to the principles of conflicts of law
thereof.  Each party agrees that all
legal proceedings concerning the interpretations, enforcement and defense of
the transactions contemplated by this Agreement and any other Transaction
Documents (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of Dallas, Texas.  Each party hereto hereby irrevocably submits
to the exclusive jurisdiction of the state and federal courts sitting in the
City of Dallas, Texas for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed
herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is
improper.  Each party hereto hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof via
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to
limit in any way any right to serve process in any manner permitted by law.
Each party hereto (including its affiliates, agents, officers, directors and
employees) hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated
hereby. If either party shall commence an action or proceeding to enforce any
provisions of a Transaction Document, then the prevailing party in such action
or proceeding shall be reimbursed by the other party for its attorneys’ fees
and other costs and expenses incurred with the investigation, preparation and
prosecution of such action or proceeding.

 

5.8        Survival.  The representations and warranties contained
in Section 3.1 and 3.2 shall survive the Closing for a period of one (1) year.  The agreements and covenants contained herein
and in the Transaction Documents shall survive the Closing, as to each
Purchaser, until such Purchaser no longer holds any Securities (except for such
provisions with a stated duration which will survive for such duration).

 

5.9        Execution.  This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party, it being understood that both
parties need not sign the same counterpart. 
In the event that any signature is delivered by facsimile transmission,
such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force
and effect as if such facsimile signature page were an original thereof.

 

5.10      Severability.  If any provision of this Agreement is held to
be invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefore, and upon
so agreeing, shall incorporate such substitute provision in this Agreement.

 

(Signature Page Follows)

 

13

 

IN WITNESS WHEREOF, the
parties hereto have caused this Securities Purchase Agreement to be duly
executed by their respective authorized signatories as of the date first
indicated above.

 

 

	
  APOLLO
  RESOURCES INTERNATIONAL, INC.

  
	
   

  
	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

Address for Notice:

 

3001 Knox Street, Suite 403

Dallas, TX  75205

Attn:  Dennis McLaughlin

Tel: 214.389.9800

Fax: 214.389.9806

 

	
  MEADOWS
  SPRINGS, INC.

  
	
   

  
	
   

  
	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

Address for Notice:

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

Attn:  Dennis McLaughlin

Tel: 214.389.9800

 

Fax: 214.389.9806

 

14Exhibit 10.30

 

“Certain portions of this Exhibit have been omitted and filed
separately with the Commission

based upon a request for confidential treatment.”

 

February 21, 2005

 

Mr. Paul K. Willmott

President

Uranium Resources, Inc.

650 S. Edwards Lane, Suite 108

Dallas, Texas  75067

 

Dear Mr. P. Willmott,

 

With reference to your letter dated February 17, 2005, your
request has been seriously considered by us, and now we hereby advise you of
our acceptance for increasing the sales/purchase price by US$[redacted] per
pounds for the 2004 and 2005 deliveries under the existing Contract dated January 13th,
2004 as amended on August 19th, 2004.  Our decision was made by taking account of
our long term relationships between two companies and the fact of a long way
difference between our agreed price in the Contract and the current uranium
market price.

 

We hope the above our decision would tighten our long established
relationships further and would lead valuable business opportunity on both you
and us in the near future.

 

 

Sincerely yours,

 

 

Masashi Nishimura

Group General Manager

Nuclear Energy Group

ITOCHU Corporation

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