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

 
 

Exhibit 10.28    
    

AMENDED AND RESTATED  

URANIUM SUPPLY CONTRACT  

BETWEEN  

ITOCHU CORPORATION  

AND  

URI, INC.  

AS OF JUNE 7, 2005 

   TABLE OF CONTENTS  

	Preamble—Object of the Contract	 	1
	RECITALS:	 	1
	Article I—Definitions	 	1
	Article II—Annual Quantities and Delivery Schedule of Concentrates	 	3
	Article III—Delivery	 	3
	Article IV—Specifications	 	4
	Article V—Warranty and Limitation of Liability	 	4
	Article VI—Price of Concentrates	 	4
	Article VII—Taxes	 	5
	Article VIII—Invoicing and Payment	 	5
	Article IX—Force Majeure	 	5
	Article X—Non Compliance	 	7
	Article XI—Term and Termination	 	7
	Article XII—Governing Law And Arbitration	 	8
	Article XIII—Governmental Permits	 	9
	Article XIV—Safeguards-Use of Concentrates	 	9
	Article XV—General and Notices	 	9

i

   Preamble—Object of the Contract  

        This Amended and Restated Contract is for the sale of Uranium Concentrates and is made and entered into as of this 7th day of June 2005. 

        Between:  ITOCHU CORPORATION having its principal office at JAPAN5-1, Kita-Aoyama 2-chome,
Minato-ku, Tokyo 107-8077, JAPAN (hereinafter in this Contract called "Buyer") on the one part. 

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

RECITALS:  

        Whereas: Seller and Buyer have heretofore entered into a Uranium Supply Contract dated January 13, 2004 (the "Original Contract) pursuant to which Seller
has agreed to sell to Buyer and Buyer has agreed to purchase Concentrates (as hereinafter defined) from Seller on the terms and conditions hereinafter set forth therein; 

        Whereas:
Seller and Buyer have heretofore entered into amendments to the Original Contract designated as Amendment No. 1 dated August 19, 2004 and a letter amendment dated
February 21, 2005; 

        Whereas:
Through June 7, 2005 Seller has delivered to Buyer 205,820 pounds of Concentrates out of a total Base Quantity of 300,000 pounds of Concentrates called for under the
Original Contract, as amended, to be delivered in 2004 and 2005; 

        Whereas:
94,180 pounds remain to be delivered during the remainder of calendar year 2005 against the Base Quantity; 

        Whereas:
Buyer has exercised its right to increase 2005 deliveries by 45,000 pounds; 

        Whereas:
A total of 139,180 pounds remain to be delivered for the remainder of calendar 2005. 

        Whereas:
Seller and Buyer desire to further amend the Original Contract; and 

        Whereas:
Seller and Buyer desire to incorporate the further amendments and the previous amendments into one document by amending and restating the Original Contract in its entirety to
incorporate the previous amendments and the amendments effected hereby. 

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

Article I—Definitions  

	1.1
	In
this Contract unless the context otherwise requires:

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

	(b)
	"Concentrates"
means natural uranium concentrates containing U3O8, which will be supplied from United States mines owned by the Seller; 

1

 

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

	(d)
	"Converter"
means one or more of the following facilities:

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

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

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

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

	(g)
	"Month"
means calendar month;

	(h)
	"Pound
(lb)" means 1 pound avoirdupois;

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

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

	(k)
	"UF6"
means natural uranium hexafluoride;

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

	1.2
	General:

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

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

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

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

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

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

2

 

Article II—Annual Quantities and Delivery Schedule of Concentrates  

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

	Delivery Year
 
	 	Base Quantity

Lb U3O8

	2005	 	300,000
	2006	 	300,000
	2007	 	300,000
	2008	 	300,000

	

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

	

	Seller
acknowledges that Buyer has elected to increase the 2005 deliveries by 45,000 pounds. Buyer acknowledges that through June 7, 2005, Seller has
delivered 205,820 pounds of concentrates against the 2005 commitment of 345,000 pounds, leaving a remaining balance of 139,180 pounds for delivery in 2005 ("2005 Remaining Balance"). Seller shall
deliver to Buyer at least fifty per cent (50%) of the Concentrates produced monthly by Seller until the 2005 Remaining Balance has been delivered, and any shortfall will be carried over and delivered
as soon as possible in 2006.

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

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

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

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

	

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

	

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

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

	2.4
	Notwithstanding
the foregoing, the timing of deliveries for the 2005 remaining balance shall be at Seller's discretion. Seller shall give Buyer at least seven (7) days notice
of each delivery for the 2005 Remaining Balance. 

Article III—Delivery  

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

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

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

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

3

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

Article IV—Specifications  

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

Article V—Warranty and Limitation of Liability  

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

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

Article VI—Price of Concentrates  

	6.1
	Purchase Price for Concentrates ("Purchase Price").

	(a)
	2005 Deliveries. For all remaining deliveries in 2005, the Seller shall pay
$[REDACTED] per pound for the first 25,180 pounds delivered and
$[REDACTED] per pound for up to the next 114,000 pounds delivered in 2005.

	(b)
	All other Deliveries. For any pounds U3O8 delivered after 2005 hereunder, the Purchase Price shall be:

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

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

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

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

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other
of its claims regarding the U.S. GDP-IPD, the matter shall be resolved by binding arbitration according to 12.2. 

	(v)
	The
Purchase Price is inclusive of:

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

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

	(cc)
	Weighing,
sampling and assaying fees;

	(dd)
	Book
transfer fee charged to Seller by converter; and

	(ee)
	Any
surcharges assessed by the converter with reference to that converter's specifications and book transfer fee. 

Article VII—Taxes  

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

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

Article VIII—Invoicing and Payment  

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

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

	8.3
	Buyer
shall pay to Seller the invoice value by telegraphic transfer within thirty (30) days from the date when Buyer receives an invoice by fax together with the applicable
Book Transfer Certificate, provided that the original invoice follows by mail; provided, however, that Buyer shall pay the invoice value within 3 business of such receipt for the 2005 Remaining
Balance.

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

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

Article IX—Force Majeure  

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

	(i)
	acts
of God, perils of the sea, accidents of navigation, war, sabotage, riot, insurrection, civil commotion, national emergency (whether in fact or law), martial law,
fire, flood, 

5

 

cyclone,
earthquake, landslide, explosion, strike, lock out, boycott, epidemic, quarantine, radiation or radioactive contamination; 

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

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

	(b)
	Force
Majeure means:

	(i)
	in
the case of Seller—those Force Majeure acts, events or circumstances which affect the conduct of the Seller's U.S. mines, the production of
U3O8 thereat, or the delivery of U3O8 by Seller to Buyer.

	(ii)
	In
the case of Buyer—those Force Majeure acts, events or circumstances which affect the taking delivery of U3O8 from Seller.

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

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

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

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

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

	(d)
	the
extent to which delivery or acceptance of U3O8 will be affected.

	9.4
	

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

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

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

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

	9.6
	If
the disability resulting from Force Majeure lasts for more than 180 days from the date of notice in accordance with Section 9.3, the party receiving the notice, may
at any time prior to advice of cessation of that disability (but not after the date of that advice) by notice in writing to the other, 

6

 

cancel
the whole or any part of any quantity of Concentrates due to be delivered during the period of Force Majeure. 

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

Article X—Non Compliance  

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

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

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

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

Article XI—Term and Termination  

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

	11.2
	Notwithstanding
Section 11.1;

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

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

	(ii)
	the
Buyer reasonably concludes on or before October 1, 2004 that the Seller will be unable to maintain production of U3O8 at its
production facilities at levels to allow the Seller to fulfil all its obligations to the Buyer under this Contract, and in each case the Buyer must notify the Seller of its decision to so terminate no
later than ten (10) business days after the dates referred to in (i) and (ii) above, respectively.

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

7

 

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

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

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

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

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

Article XII—Governing Law And Arbitration  

	12.1
	Governing
Law 

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

	12.2
	Arbitration

Any
dispute, controversy or claim arising out of or relating to this Agreement shall be finally resolved by arbitration in accordance with the rules of the American Arbitration Association then
obtaining. Unless otherwise agreed in writing by the Parties hereto, the arbitral panel shall consist of three (3) arbitrators, one to be appointed by each Party and the third to be appointed
by the two arbitrators appointed by the Parties. In the event that a Party fails to appoint an arbitrator within fifteen (15) days after any such dispute, controversy or claim has been referred
to arbitration hereunder, then, in such event, the other Party may request the American Arbitration Association to appoint an arbitrator for the Party failing to make such appointment. In the event
that the third arbitrator has not been appointed within thirty (30) days after any such dispute, controversy or claim has been referred to arbitration hereunder, then, in such event, either
Party may request the American Arbitration Association to appoint such third arbitrator. The arbitration proceedings, all documents submitted therein and the award of the arbitral panel shall be in
the English language, and all members of the arbitral panel shall be fluent in English. The arbitration proceedings shall be held in New York, New York, the United States of America. The arbitral
panel shall apply the rules of procedure applicable to civil actions in the courts of the state of New York; provided, however, that both Parties shall
be entitled to representation by counsel, to appear and present written or oral evidence and argument and to cross-examine witnesses presented by the other Party. The arbitral award shall be in
writing and the arbitral panel shall provide written reason for its award. The award of the arbitral panel shall be final and binding upon the Parties. The Parties waive any rights to appeal or to
review such award by any court or tribunal, and such award shall be final and binding. Each Party agrees that any arbitral award or final judgment 

8

 

rendered
against it in any action or proceeding relating in any way to this Agreement shall be conclusive and may be enforced, to the extent permitted by applicable law, in any court in the state of
New York, by suit on the arbitral award or judgment, a certified copy of which arbitral award or judgment shall be conclusive evidence thereof, or by such other means provided by applicable law. The
Parties further agree to undertake to carry out without delay the provisions of any arbitral award or order. A Party may disclose the contents of an award of the arbitral tribunal only to affiliates,
Governmental Authorities or other persons as required by applicable law. 

	(a)
	To
the extent any Party has or may acquire any immunity (sovereign or otherwise) from jurisdiction of any arbitral tribunal or court in or in connection with any arbitration under
this Agreement or any proceeding, action, lawsuit or process (whether through service or notice, attachment in aid of execution, execution or otherwise) pursuant to, in aid of, arising out of, in
confirmation or registration of, or to enforce, an award of an arbitration proceeding under this Agreement, each Party, solely for the purpose of such arbitration proceeding, action, lawsuit or
process, hereby irrevocably waives such immunity. The foregoing waiver and consent are intended to be effective to the fullest extent now or hereafter permitted by the applicable law of any
jurisdiction where any suit, action or proceeding with respect to an arbitration under this Agreement may be commenced, including the fullest extent permitted under the Foreign Sovereign Immunities
Act of 1976 of the United States of America and are intended to be irrevocable and not subject to withdrawal for purposes of such act.

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

Article XIII—Governmental Permits  

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

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

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

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

Article XIV—Safeguards-Use of Concentrates  

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

Article XV—General and Notices  

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

9

 

party,
disclose such terms, conditions or information to third persons unless disclosure relates to information already within the public domain or is; 

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

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

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

	(d)
	reasonably
necessary for financing purposes; or

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

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

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

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

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

	(i)
	To
Seller: 

URI, Inc.

650 S. Edmonds Lane

Suite 108

Lewisville, TX 75067

Attention: Paul K. Willmott

Facsimile: 972-219-3331 

	(ii)
	To
Buyer: 

ITOCHU
CORPORATION]

5 - 1, Kita-Aoyama 2-Chome

Minato-Ku, Tokyo 107 - 8077

Japan

Attn: Nuclear Energy Department

Facsimile: 81-3-3497-6655 

10

 

	with copy to:	 	ITOCHU International Inc.

1133 21st Street NW

Suite 200
	

 	
 	

Washington, DC 20036

Attn: Nuclear Fuel Group

Facsimile: 202-835-9764

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

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

	(i)
	Be
in the English language;

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

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

	(iv)
	Be
signed by an authorized person of that party. 

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

	 	 	ITOCHU CORPORATION
	
 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name: Masashi Nishimura

Title: Group General Manager,

Nuclear Energy Group
	

 	
 	

Date:	
 	

 
	 	 	 	 	

	

 	
 	
URI, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name: Paul Willmott

Title: President
	 	 	Date:	 	 
	 	 	 	 	

	
Uranium Resources, Inc.	
 	

 
	

By:	
 	

 	
 	

 
	 	 	
	 	 
	Name: Paul Willmott

Title: President	 	 
	Date:	 	 	 	 
	 	 	
	 	 

11

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Exhibit 10.28QuickLinks
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"Certain portions of this Exhibit have been omitted and filed separately with the Commission based upon a request for confidential treatment."

Exhibit 10.32  

 
 

CONTRACT FOR THE SALE OF
  URANIUM CONCENTRATES    
    

THIS CONTRACT is made with effect as of the 29th day of April 2005. 

BETWEEN:  

URI, Inc., a company under the laws of the State of Delaware having its principal office in Dallas, Texas
("URI") 

AND:  

UG U.S.A., INC., a company under the laws of the State of Georgia having its principal office in Atlanta, Georgia
("UG") 

WHEREAS URI has offered to sell and UG wishes to purchase a quantity of uranium concentrates on the terms and conditions set forth in this Agreement, 

NOW THEREFORE, in consideration of the premises and the mutual obligations hereinafter described and intending to be legally bound, the Parties agree as
follows: 

ARTICLE I

INTERPRETATION  

        1.01    Definitions:    In this Agreement the following terms and expressions shall have the following meanings: 

	(a)
	"Agreed
Rate" means a rate per annum that is equal to two (2%) percentage points in excess of the prime rate of interest per annum announced by the JP Morgan Chase Bank at New York,
New York, as its prime rate of interest for U.S. dollar commercial loans;

	(b)
	"Book
Transfer" means the transfer of U3O8 on the books of the Converter from the account of URI, or an account designated by URI, to the account of UG;

	(c)
	"Business
Day" means a day (other than a Saturday or Sunday) on which banks are open for general business in the United States of America;

	(d)
	"Converter"
means the conversion facilities of ConverDyn, located in Metropolis, IL.

	(e)
	"Concentrates"
means mill concentrates containing U3O8;

	(f)
	"Concentrates
Price" is the price payable by UG to URI per pound of U3O8 delivered hereunder and shall be determined as the Market Price less a fixed,
non-escalated discount of $[REDACTED] per pound U3O8;

	(g)
	"Converter's
Notice" means a written notice issued by the Converter confirming the Origin and the Delivery Quantity that was delivered to UG on the Delivery Date;

	(h)
	"Delivery
Date" means any date, not later than December 31, 2007, upon which URI delivers Concentrates to UG;

	(i)
	"Delivery
Notice" means the written notice issued by URI and provided to UG 90 days prior to a Delivery Date. 

1

 

	(j)
	"Delivery
Quantity" means a total of 300,000 pounds U3O8 which may be delivered by URI in up to three separate deliveries to UG;

	(k)
	"Market
Price" means the average of the month end spot prices for U3O8 published for the month immediately preceding the month in which a Delivery Date occurs
by TradeTech and the Ux Consulting Co., LLC. Both spot prices shall be applicable to origins of U3O8 legally acceptable for use in US reactors on the Delivery Date.

	(l)
	"Origin"
means the country in which the Delivery Quantity was mined and milled;

	(m)
	"Party"
means either UG or URI and "Parties" means both of them;

	(n)
	"Suspension
Agreement" means the suspension agreement which has been entered into and is still in force as of the date of execution of this Agreement between the United States
Department of Commerce and The Russian Federation concerning the import of uranium into the United States of America as such agreement may be amended or replaced; and

	(o)
	"U3O8"
means natural uranium concentrates expressed as triuranium octoxide. 

        1.02    Headings:    The division of this Agreement into articles and sections, and the insertion of headings, is for
convenience of reference only and shall not affect the construction or interpretation of this Agreement. Any reference herein to an article, section or other subdivision is a reference to such
provision as contained in this Agreement. 

        1.03    Expanded Meanings:    In this Agreement, unless there is something in the subject matter or context
inconsistent therewith, the singular shall include the plural and the plural shall include the singular. 

        1.04    Calculation of Number of Days:    In any case in which a number of days is prescribed in this
Agreement, the same shall be determined exclusive of the first day and inclusive of the last day. 

        1.06    Rounding of Numerical Figures:    Whenever a numerical figure is to be rounded or calculated to fewer digits
than the number of digits available, the following procedure shall be applied unless otherwise specified herein: 

	(a)
	if
the first digit discarded is less than five (5), the last digit retained will not be changed; and

	(b)
	if
the first digit discarded is equal to or greater than five (5), the last digit retained will be increased by one (1). 

        1.05    Currency:    All amounts and sums of money referred to in this Agreement are expressed in terms of United
States dollars and all amounts and sums payable hereunder shall be paid in lawful money of the United States of America. 

        1.06    Entire Agreement:    This Agreement contains all the terms of the mutual understanding between the Parties
with respect to the subject matter of this Agreement and supersedes and replaces any and all written and oral arrangements, correspondence, conversations, and documents made and exchanged between the
Parties with respect to the subject matter of this Agreement prior to the execution of this Agreement except as otherwise specifically provided for herein. Any modification, alteration, or amendment
of this Agreement shall be in writing dated after the date hereof and duly executed by both Parties. 

ARTICLE II

BASIC TERMS OF PURCHASE AND SALE  

        2.01    Basic Agreement:    On the terms and conditions set forth in this Agreement, URI shall sell and deliver to UG,
and UG shall purchase, pay for and take delivery from URI of the Delivery Quantity on the Delivery Date. 

2

 

        2.02    Delivery Notice:    No later than ninety (90) days prior to each Delivery Date, URI shall provide UG
with a Delivery Notice stipulating the Delivery Quantity and Delivery Date. 

        2.03    Delivery, Delivery location and Delivery Date:    On the Delivery Date, URI shall deliver the Delivery
Quantity to UG by Book Transfer at the Converter. Delivery of the Delivery Quantity shall occur at the time the Converter makes the Book Transfer. 

        2.04    Origin:    The Delivery Quantity may be of any Origin or combination of Origins that are deliverable to and
usable by nuclear electric generating facilities in the United States of America without the imposition of any tariffs, duties or similar charges. 

        2.05    Conveyance:    URI shall issue to the Converter an instruction to Book Transfer the Delivery Quantity on the
Delivery Date. URI shall instruct the Converter to provide UG and URI with a copy of the Converter's Notice by facsimile transmission immediately following the conclusion of such Book Transfer. 

        2.06    Representation and Warranties by URI:    URI represents and warrants to UG that: 

	(a)
	URI
will have good and marketable title to the Delivery Quantity being sold to UG and will convey good and marketable title thereto, free and clear of any liens, charges or
encumbrances of any description;

	(b)
	the
Delivery Quantity will conform to the Origin requirements described in Section 2.03;

	(c)
	no
portion of the Delivery Quantity will have been obtained by URI under or through any arrangement, swap, or exchange that violates any of the laws of the United States of America
regarding the importation or use of U3O8 or is designed to circumvent the import limits for uranium under the Suspension Agreement; and

	(d)
	the
transaction set forth in this Agreement is not part of any arrangement, swap, or exchange by URI that violates any of the laws of the United States of America regarding the
importation or use of U3O8 or is designed to circumvent the import limits for uranium under the Suspension Agreement. 

        The
foregoing representations and warranties constitute continuing representations and warranties for the benefit of URI and survive the completion of the transactions contemplated by
this Agreement. 

        2.07    Representations and Warranties of UG:    UG represents and warrants to URI that: 

	(a)
	The
Delivery Quantity will be used exclusively for peaceful, non-explosive purposes in accordance with all applicable laws and regulations;

	(b)
	the
transaction set forth in this Agreement is not part of any arrangement, swap, or exchange by UG that violates any of the laws of the United States of America regarding the
importation or use of uranium or which is designed to circumvent the import limits for uranium under the Suspension Agreement; and

	(c)
	UG
will impose the obligations in Section 2.06 (a) and (b) on any person, company or other entity with which UG enters into an arrangement for the sale, transfer
exchange or other disposition of any portion of the Delivery Quantity. 

        The
foregoing representations and warranties constitute continuing representations and warranties for the benefit of URI and survive the completion of the transactions contemplated by
this Agreement. 

        2.08    Exclusivity of Warranties:    THE EXPRESS WARRANTIES SET FORTH HEREIN ARE EXCLUSIVE, AND NO OTHER WARRANTIES
OF ANY KIND, WHETHER STATUTORY, WRITTEN, ORAL OR IMPLIED (INCLUDING WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE OR MERCHANTABILITY), SHALL APPLY. 

3

 

        2.09    Permits:    Each Party shall, at its own expense, be responsible for obtaining all approvals, authorization,
consents, licenses, and permits necessary to carry out its obligations hereunder, and to the extent necessary, the other party shall co-operate as to the obtaining of such approvals,
authorizations, consents, licenses, and permits. 

        2.10    Costs:    URI will assume any fees, costs or charges incurred in carrying out the Book Transfer. 

ARTICLE III

PURCHASE PRICE AND PAYMENT  

        3.01    Concentrates Price:    The amount payable per pound U3O8 by UG for the Delivery
Quantity delivered by URI pursuant to this Agreement shall be the Concentrates Price. 

        3.02    Invoices:    At least twenty (20) days prior to the Delivery Date, URI shall send UG an invoice,
bearing the Delivery Date, in the amount referred to in Section 3.01. UG agrees that the original invoice may be sent by facsimile and that the receipt of such facsimile is receipt of the
invoice for purposes of payment, provided that the original written invoice is received within ten (10) days before the Delivery Date. 

        3.03    Payment:    UG shall pay the invoice within 30 days from the Delivery Date subject to UG's prior
receipt of Converter's Notice and URI's invoice detailing correct payment instructions. If such day on which payment is due is not a Business Day, the previous Business Day will be substituted.
Payment to URI of the full amount invoiced shall be made by electronic transfer of funds immediately available to URI at the bank account designated on the invoice, free from all charges or
deductions. 

        3.04    Interest:    If the amount on URI's invoice, calculated in accordance with Section 3.01, is not paid at
or within the times specified in Section 3.03, such amount shall bear interest from the due date until the actual date of payment at the Agreed Rate. 

ARTICLE IV

TAXES, DUTIES OR CHARGES  

        4.01    Taxes, Duties or Charges:    URI shall be responsible for and shall pay any taxes, imposts, or duties imposed
or levied by or payable to any taxing authority upon or with respect to any or all of such Delivery Quantity prior to delivery. UG shall be responsible for and shall pay any taxes, imposts, or duties
imposed or levied by or payable to any taxing authority upon or with respect to any or all of the Delivery Quantity, or the use thereof, coincident with or after delivery of the Delivery Quantity to
UG. 

ARTICLE V

TITLE AND RISK OF LOSS  

        5.01    Title and Risk of Loss:    Upon completion of the Book Transfer, title to the Delivery Quantity and, as
between URI and UG, all risk of loss of or damage to the Delivery Quantity and to persons or properties caused by the Delivery Quantity shall pass from URI to UG. 

ARTICLE VI

LIMITATION OF REMEDIES AND DAMAGES  

        6.01    Failure to Transfer:    In the event of failure to effect a Book Transfer on the Delivery Date for any reason,
other than an Event of Force Majeure pursuant to Article VII, URI's liability to UG for claims of any kind shall be limited to the difference between UG's reasonable, direct cost of purchasing
a pound of replacement U3O8 times the number of pounds of U3O8 not delivered under this Agreement, and the Concentrates Price times the number of pounds
of U3O8 not delivered. 

4

 

        6.02    Consequential Damages:    Except as otherwise specifically set forth herein, in no event, whether under
contract, tort (including negligence or strict liability), warranty, or otherwise, shall either Party to this Agreement be liable to the other Party for any incidental or consequential damages or
losses of any nature arising out of or, connected with or resulting from the performance of or failure to perform this Agreement, including without limitation, loss of profits, loss of use of
facilities, or costs of capital. 

ARTICLE VII

FORCE MAJEURE  

        7.01    Definition:    "Event of Force Majeure" means an event which prevents or delays the performance by a Party of
its obligations under this Agreement and arises out of causes beyond the reasonable control and without the fault or negligence of such Party. An Event of Force Majeure includes but is not limited to
acts of God, fire, flood, explosion, strikes, labour disputes, sabotage, riots, acts of any civil or military authority, government legislation, regulations, actions or inactions, judgment or decision
of a court of law or other authority with the force of law, wars, major equipment failure or unavailability of transportation facilities, including any failure or inability due to claim of Force
Majeure by the Converter to comply with the instructions of URI to effect delivery of the Delivery Quantity to UG. 

        7.02    Non-Liability for Event of Force Majeure:    Subject to the provisions of this Article, where
either Party is prevented from performing its obligations hereunder by an Event of Force Majeure, other than the obligation to pay money, the obligations of both Parties are suspended for the duration
of such Event of Force Majeure and neither Party shall be liable to the other for such failure to fulfil obligations. 

        7.03    Notices:    A Party whose performance is affected by an Event of Force Majeure shall promptly give the other
Party notice of the occurrence of the Event of Force Majeure and its anticipated effect on the Party's performance under this Agreement, of any significant change in the nature of the Event of Force
Majeure and of any progress made in eliminating it, and of the termination of any Event of Force Majeure and of the anticipated date of resumed performance of contractual obligations. 

        7.04    Obligations of Affected Party:    A Party which fails to fulfil its obligations because of an Event of Force
Majeure shall use commercially reasonable efforts to minimize or eliminate the Event of Force Majeure but shall not be required to settle a strike, lockout, work slowdown, work stoppage, or other
labour dispute, and shall otherwise fulfil its obligations at a time to be agreed upon by the Parties that will be as soon as is reasonably possible after the elimination of the Event of Force
Majeure. 

        7.05    Cancellation of the Delivery:    If a delivery cannot be made within sixty (60) days from the original
Delivery Date because of an Event of Force Majeure, the Party not claiming Force Majeure may terminate the affected Delivery. In the case that the Event of Force Majeure would continue after the date
of termination of the affected Delivery, the Party not claiming Force Majeure may, at its option, reduce or postpone future Deliveries or terminate all or part of the remaining Deliveries. Regarding
the terminated Deliveries or this Agreement, neither Party shall have any liability to the other Party due to the transaction contemplated by this Agreement not taking place. 

ARTICLE VIII

NOTICES  

        8.01    Notices:    Any notice, invoice, or other written communication required or permitted to be given hereunder
shall be in writing and either be delivered personally to the Party to whom it is directed or sent by facsimile and shall be effective on the day of receipt of the notice if received during 

5

 

normal
business hours of the addressee, and if not received during such normal business hours, then on the first business day of the addressee after such receipt. 

        8.02    Addresses:    The addresses of the Parties to which all such notices shall be forwarded are as follows: 

	if to UG:	 	UG U.S.A., Inc.

115 Perimeter Center Place, NE

Suite 647

Atlanta, GA 30346

Attention: Manager, Contract Administration

Facsimile: (770) 396 - 3974
	

if to URI:	
 	

URI Inc.

650 South Edmonds Lane

Suite 108

Lewisville, TX 75067

Attention: Tom Ehrlich

Facsimile: (972) 219 - 3311
	

 	
 	

with copy to:	
 	

Joe Card

5180 Roswell Road,

North Bldg., Suite 203

Atlanta, GA 30342
	 	 	Facsimile:	 	(404) 947 - 0906

        The
address of a Party for notices may be changed by notice given to the other Party in accordance with this Article VIII. 

ARTICLE IX

ASSIGNMENTS  

        9.01    Consent Required for Assignment:    Neither Party may assign any of its rights under this Agreement without
the prior written consent of the other Party, which consent shall not unreasonably be withheld; provided, however, that either Party may assign any of its rights hereunder, without such consent, to
its parent company, its affiliates, or its bank or other financial institution. No such assignment shall relieve the assignor from any of its obligations hereunder. 

        9.02    Enurement:    This Agreement shall enure to the benefit of and be binding upon the Parties and their
respective successors and permitted assigns. 

ARTICLE X

APPLICABLE LAW  

        10.01    Governing Law:    This Agreement shall be governed by and construed in accordance with the substantive laws
of the State of Georgia. 

ARTICLE XI

WAIVER  

        11.01    Waiver:    No waiver, alteration, amendment, modification of this Agreement, or any covenant, condition, or
limitation herein contained is valid unless in writing and duly executed by the Party to be charged therewith. Furthermore, no evidence of any waiver, alteration, amendment, or modification shall be
offered or received in evidence in any proceeding, arbitration, or litigation between the Parties arising out of or affecting this Agreement, or the rights or obligations of any Party 

6

 

hereunder,
unless such waiver, alteration, amendment, or modification is in writing, and duly executed. Further, the provisions of this Article may not be waived. 

ARTICLE XII

CONFIDENTIALITY  

        12.01    Confidentiality:    The Parties shall treat this Agreement as confidential, and neither Party shall disclose
its contents without the prior written consent of the other Party to any person except to its affiliates, legal advisors, financers or auditors. If disclosure is required to comply with the laws or
regulations of a government or government agency or by a court having jurisdiction over one of the Parties or if a Party is required by the rules of a stock exchange to make timely disclosure of
developments, such Party may so disclose notwithstanding the foregoing upon prior notice to the other Party. 

        IN WITNESS WHEREOF the Parties have executed this Agreement as at the day and year first above written. 

	 	 	UG U.S.A., Inc.
	
 	
 	

By:	
 	

/s/  FREDERIC PATREAU      

	 	 	Name:	 	Frederic Patreau

	

 	
 	

By:	
 	

/s/  GERHARD LOH      

	 	 	Name:	 	Gerhard Loh

	

 	
 	
URI, INC.
	

 	
 	

By:	
 	

/s/  PAUL K. WILLMOTT      

	 	 	By:	 	Paul K. Willmott

7

QuickLinks

CONTRACT FOR THE SALE OF URANIUM CONCENTRATES

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