Document:

Exhibit 10.1

 

 

COLLECTIVE BARGAINING
AGREEMENT

 

 

Between

 

 

PNGI CHARLES TOWN GAMING LIMITED LIABILITY COMPANY

 

 

and

 

 

WEST VIRGINIA UNION OF MUTUEL CLERKS, LOCAL 553

SERVICE EMPLOYEES INTERNATIONAL UNION, AFL-CIO

 

 

JANUARY 1, 2006 - DECEMBER 31, 2010

 

 

TABLE OF
CONTENTS

 

	
  Article Number

  	
   

  	
  Subject

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Recognition

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Term of Agreement

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Wages and Other Rates

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  New Jobs

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Union Security

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Seniority

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Leave of Absence

  	
   

  	
  14

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Discharge

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Grievance Procedure

  	
   

  	
  17

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Military Service

  	
   

  	
  17

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Shortages and Overages

  	
   

  	
  18

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Exclusions

  	
   

  	
  18

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  No Strike or Lockout

  	
   

  	
  19

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  Notice

  	
   

  	
  20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  Management’s Prerogatives

  	
   

  	
  21

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  Funeral Leave

  	
   

  	
  22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  Technological Displacements

  	
   

  	
  22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  Uniforms

  	
   

  	
  22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  Severability

  	
   

  	
  23

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  Pension Plan

  	
   

  	
  24

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  Vacations

  	
   

  	
  24

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  Sunday Racing

  	
   

  	
  24

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  Video Lottery Agreement

  	
   

  	
  25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  Employee Benefits

  	
   

  	
  25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  Joint
  Labor Management Committee

  	
   

  	
  25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule A

  	
   

  	
  Wage Schedule

  	
   

  	
  28

  	
   

  

 

2

 

AGREEMENT

 

THIS AGREEMENT is made and entered into as of the 1st day
of January, 2006, by and between PNGI CHARLES TOWN GAMING LIMITED LIABILITY
COMPANY, or its successors (hereinafter referred to as “EMPLOYER”) and the WEST
VIRGINIA UNION OF MUTUEL CLERKS, LOCAL 553, SERVICE EMPLOYEES INTERNATIONAL
UNION, AFL-CIO, or its successor (hereinafter referred to as “UNION”).

 

PREAMBLE

 

The general purpose of this
Agreement is to set forth terms and conditions of employment, and to promote
orderly and peaceful labor relations for the mutual interests of Employer, the
Employees and Union.

 

The parties recognize that
the success of Employer and the job security of the Employees depend on
Employer’s success in offering and marketing quality thoroughbred and simulcast
racing programs.

 

To these ends, Employer and
Union encourage to the fullest degree friendly and cooperative relations
between their respective representatives at all levels and among all Employee’s,
whether or not covered by this Agreement.

 

ARTICLE 1 - RECOGNITION

 

1.1                                 The Employer hereby recognizes the Union as
the exclusive bargaining representative with respect to wages, hours and other
conditions of employment for all Employees of the Employer who are employed at
the PNGI Charles Town Gaming Limited Liability Company, in the Pari-Mutuel
Department, and the Jockey-Valets, excluding the Mutuel Manager, Assistant
Mutuel Manager, Office Manager, Head Cashier, Assistant Head Cashier, Porter,
Auditor, Data Processing Employees and all Supervisory and Security Personnel. At
all times mentioned

 

3

 

herein,
“Employee” shall mean only those Employees who are members in good standing of
the Union and there shall be no distinction between “live racing” mutuel
employees and simulcast mutuel employees. This Agreement shall apply to
existing job classifications set forth in Schedule A hereof and, in
addition to the exclusions set forth above, shall not apply to new job
classifications established by the Employer, except as specifically herein
provided.

 

ARTICLE 2 - TERM OF AGREEMENT

 

2.1                                 This Agreement
shall be effective as of the 1st day of January, 2006, and shall continue in
force and effect until midnight, December 31, 2010; and from year to year
thereafter, unless either party, at least sixty (60) days prior to said
termination date, or prior to sixty (60) days before the end of any subsequent
term, gives written notice to the other to terminate this Agreement. In the
event that such notice is given, negotiations shall be opened not less than
sixty (60) days prior to the expiration date of this Agreement, or any
subsequent anniversary date.

 

ARTICLE 3
- WAGES AND OTHER RATES

 

3.1                                 Effective January 1, 2006, all Employees
covered by this Agreement shall receive a retroactive across-the-board wage
increase effective July 1, 2005 as follows:  Mutuel Clerks, $5.00; Jockey Valets, $7.00.

 

3.2                                 WAGES. Beginning January 1, 2006, the
wages of pay for each classification effective during the term of this
Agreement shall be as set forth on Schedule A attached hereto.

 

3.3                                 The rates of pay set forth in Schedule A
shall be paid for each race day which consists of five hours worked. Pay will
be in fifteen (15) minute increments after five (5) hours.

 

3.4                                 Unless notified by the Employer at least one
hour prior to the scheduled reporting time that there is no available work, an Employee
who reports for work shall receive ten dollars

 

4

 

($10.00).
This notification may, at the Employer’s option, be by way of an automated
phone line message. If the Employer exercises this option and installs the
automated phone line, it shall be the obligation of each Employee to call and
check the automated phone line to determine if they should report to work.

 

3.5           Overtime records
shall be maintained by the Employer and the Employer will make each employee’s
overtime records available to such employee for payroll verification purposes.

 

3.6                                 All Jockey-Valets shall receive for each
racing day consisting of at least eight (8) races but not more than ten (10) races,
his/her normal daily rate. For all races in excess of ten (10), each valet
shall receive pay equal to one and one quarter (1.25) times his/her regular pay.
Said pay shall be calculated by dividing the base pay by ten (10) and
multiplying the product of that calculation by one and one quarter (1.25) times
for each race after ten (10).

 

3.7                                 All Mutuel Clerks covered by this Agreement
shall receive Ten Dollars ($10.00) per day extra pay for work performed on the
day of the West Virginia Breeders Classic race, the National Breeders Cup day
and Triple Crown series, each of which consists of a five (5) hour shift.

 

3.8                                 For a racing program which runs in excess of
six (6) hours, an Employee shall receive pay at one hundred twenty-five
percent (125%) of the normal rate for all hours worked in excess of six (6) hours,
said pay for work over six (6) hours to be calculated in fifteen (15)
minute increments.

 

3.9                                 In light of the elimination of the money room bargaining
positions, the two (2) employees who had been employed in the money room will
receive no decrease in their level of pay even though they may have taken
positions having a lower pay grade. Their wage rates at their former money room pay
level will remain in effect and will be frozen until the remainder of the bargaining
unit employees wages catch up with them at their pay grade.

 

5

 

3.10                           Self-Service Machines – In accordance with the terms of the prior
agreement between the parties, as of January 1, 2005, the Employer had the
right to use self-service machines until the handle on the self-service machines
exceeds thirty percent (30%) of the total handle for every day during  the meets. Commencing July 1, 2005, and
then each January 1 thereafter during the five-year term of this
Agreement, the 30% of total handle cap on the use of self-service machines will
be increased by 4% (July 1, 2005 – 34%; January 1, 2006 – 38%; January 1,
2007 – 42%; January 1, 2008 – 46%, and January 1, 2009 – 50%) ending
at 50%. Review of the self-service handle shall be done on a quarterly basis
and will be based on the average handle over the quarter. In the event the applicable
self-service cap is exceeded, Employer agrees to assign more employees to
teller terminals so as to keep the use of self-service machines at the
applicable cap or less. The Employer shall have the sole right to determine the
number of additional employees needed to comply with this provision. Terminal
Operators hired prior to September 10, 1997, will not be displaced due to
technology.

 

ARTICLES
4 - NEW JOBS

 

4.1                                 The Employer shall have the right to create
any new Union job classification in any department covered by this Agreement
which it deems appropriate and establish the rate of pay to be given such new
classification, provided, however, that the Employer, prior to the effective
date of such new job classification, shall meet with the Union to discuss such
new job classification and the proposed rate of pay. If there is no agreement
on the rate of pay for such new job classification within sixty (60) calendar
days of such first meeting, such dispute shall, at the option of either party,
be submitted to arbitration pursuant to the provisions of ARTICLE 9 -  GRIEVANCE PROCEDURE.

 

4.2                                 The Employer shall have the right to start
operating under such new job classifications and continue to operate the same
at the rates established by the Employer until agreement with the Union can be
reached, or until the decision of the arbitrator is received. If the Employer
is ordered to pay a higher rate by an arbitrator, or by agreement between the
parties, all such

 

6

 

increases
shall be made retroactive to the first day of hire of all Employees in such new
job classifications.

 

4.3                                 All new jobs created by the Employer under
this Article 4 shall be posted and filled by bidding as is provided for
the filing of permanent job vacancies in ARTICLE 6 -  SENIORITY.

 

4.4                                 In the event that any additional new or
alternative forms of gambling are conducted by or at PNGI CHARLES TOWN GAMING
LIMITED LIABILITY COMPANY, limited to off-track wagering and telephone account
wagering, all jobs created as a result of this new gambling will be Union jobs
and assigned by the provisions of ARTICLE 6 -  SENIORITY.

 

ARTICLE 5
- UNION SECURITY

 

5.1                                 All new
employees (employees hired on or after January 1, 2001) included in the
bargaining unit covered by this Agreement shall be considered probationary
employees until they have worked forty-five (45) programs at the PNGI Charles
Town Gaming Limited Liability Company. During an employee’s probationary period
of employment, the Employer may terminate such probationary employee at
the Employer’s sole discretion and such termination shall not fall within the
Grievance Procedure as provided by Article 9.

 

Any employee who is a member
of the Union on the effective date of this Agreement shall be required, as a
condition of employment, to remain a member of the Union. Any other employee,
excluding Jockey Valets, shall be required, as a condition of employment, to
become and remain a member of the Union upon the completion of twenty (20) days
or more of work, and in the case of Jockey Valets upon the completion of
working fifty (50) live racing days, regardless of the number of years it takes
to accumulate such twenty (20) or fifty (50) days, as applicable. No full-time
employee who is employed on a regular basis shall be required to join the Union
until he/she has worked twenty (20) days and in the case of Jockey Valets until
he/she has worked fifty (50) live racing days.

 

7

 

5.2                                 The Employer may hire new Employees from
any source, however, it agrees that it will not discriminate against Union
members, if they are qualified. Management’s decision on qualifications and
whether such applicant is satisfactory, shall be binding on all parties.

 

5.3                                 The Union agrees that all Employees included
in the bargaining unit covered by this Agreement shall be admitted to
membership in the Union upon application and tender of regular dues and
initiation fees which uniformly apply to all members of the Union at such time.

 

5.4                                 The Employer agrees to deduct Union dues and
initiation fees from the wages of Employees who authorize such deductions in writing
pursuant to a procedure and on a form mutually acceptable to the Employer
and the Union. In the event any Employee shall become delinquent in the payment
of dues, regular initiation fees and assessments and fines which  universally apply to all members of the
Union, and the Union shall give written notice of such delinquency to the
Employer; then and in that event, the Employer shall discharge such Employee,
if the Employee has not paid such delinquency within five (5) days from
the receipt of such written notice to the Employer.

 

5.5                                 The Union will defend, indemnify and save
harmless the Employer herein against all claims, demands, liabilities and
disputes that may arise out of or by reason of any action taken or not
taken by the Employer at the request of the Union, for the purpose of complying
with any of the provisions of this section. The Employer will defend, indemnify
and save harmless the Union and each of its members against any and all claims,
demands, liabilities and disputes that may arise out of or by reason of
any action taken or not taken by the Union or any of its members at the request
of the Employer, for the purpose of complying with any provision of this
Contract.

 

5.6                                 The President, Business Agent or other
authorized representatives of the Union, not to exceed three (3) in
number, shall have access to the Employer’s plant during the race meetings, for
the purpose of adjusting grievances, investigating working conditions and
carrying into effect

 

8

 

the
provisions of this Agreement, but such access shall be set at such times and
places and in such manner which will not interfere with the regular duties of
the Employees or other operations of Employer’s business.

 

5.7                                 The Employer shall provide office space at
the track for the Union for the purpose of conducting Union business. In the
event of a redesign or reconfiguration of the facility, the Employer shall have
the option of providing substitute office space of a size and location comparable
to the office space provided for the Union as of the effective date of this
Agreement. The office space so provided shall not be open, for any purpose,
during the normal working hours, unless such use is specifically approved by
the Employer and shall not be used at any time as a break room. Employees on
duty will also be prohibited from performing union work while on duty. The
exception to this restriction is that an employee who is scheduled for a
disciplinary interview will be entitled to have a Union representative present
upon request as provided by the federal Weingarten doctrine which provides
union representation during an investigatory interview if an employee has a
reasonable belief that discipline or other adverse consequences may result
from what he or she says.

 

ARTICLE 6
– SENIORITY

 

6.1                                 The Employer believes in and will continue to
practice the principles of seniority. Except as hereinafter provided, in all
cases of promotions, filling of permanent or temporary vacancies, permanent or
temporary transfers, and increase or decrease of work force, the Employer will
take  into consideration an Employee’s
seniority and ability to perform the work. In determining an Employee’s
ability to perform the normal requirements of the new job, consideration
will be given to job experience, related job experience, education and/or
ability and the legal requirements mandated by the Americans with Disabilities
Act. However, it is recognized that in making promotions to jobs higher up in a
line of progressions requiring supervisory qualifications, leadership must also
be considered a factor of ability. When all the factors that constitute ability
to perform the work are relatively equal, then seniority shall prevail.

 

9

 

The following job
classification shall be filled in the discretion of the Employer on the basis
of seniority as primary determinative factor and ability to perform the
work as a secondary determinative factor: extra duty jobs and dedicated or
special windows.

 

6.2                                 Subject to the provisions of this Article,
seniority, as of the effective date of this Agreement, shall be based on the
length of continuing employment at the track from the date of hire (track
seniority), which seniority shall be used in establishing seniority in each of
the following departments of the Employer:

 

(A)                              Pari-Mutuel Department

 

(B)                                Jockey-Valets Department

 

6.3                                 There shall be the following two seniority
lists which shall be maintained by the Employer:

 

(A)                              Full time Employees including full time extra
Employees

 

(B)                                Part time Employees

 

Full time Employees are
those Employees who hold specific job positions and work regularly from Monday
through Sunday; however, Sunday work is optional for all Employees who worked
for Shenandoah Downs or Charles Town Races, Inc. prior to January 1,
1979 and who since said date have continuously worked for Charles Town Races, Inc.
and PNGI Charles Town Gaming Limited Liability Company through the date of this
contract, and failure of any such Employee to work on Sunday shall not
adversely affect his/her seniority or his/her status as a full time Employee. Full
time extra Employees are those full time Employees who fill in for full time
Employees on any day between Monday and Thursday and who may fill in for
absent full time Employees on Fridays, Saturdays, Sundays and holidays, if such
vacancies are not filled by part time Employees on these days. Part time
Employees are those Employees who work Friday, Saturdays, Sundays and holidays.
Said lists when prepared, shall include, by date of hire, all Employees of the
track who were employed by either Shenandoah Downs or Charles Town Races, Inc.
The Employer shall maintain the two (2) seniority lists set forth above
and shall update each list at the beginning of each racing year (season). Prior
to the first race day of each

 

10

 

year,
each Employee who is entitled to make such a selection shall designate in
writing whether such Employee will be a full time Employee, a full time extra
Employee or a part time Employee and such Employees shall continue in such
designated category and in the position held by them at the beginning of such
race year unless his/her category and position is otherwise changed as provided
in this Agreement. All selections become final after 30 days from the date
selection card was signed.

 

6.4(A)               In order to
maintain status as a full time Employee, each such Employee must work each year
a number of days equal to seventy-five percent (75%) of the total days
scheduled for live racing programs at the PNGI Charles Town Gaming Limited
Liability Company, and may not miss or be absent more than five (5) Saturdays
or five (5) Sundays during any one calendar year; provided, however, that
any Employee who has maintained continuous employment at the PNGI Charles Town
Gaming Limited Liability Company, or its predecessor, Charles Town Races, Inc.,
since January 1, 1979, shall not be penalized hereunder if such Employee
misses five (5) or more Sundays, except for those Employees that commit to
work on Sundays and so indicate on their selection cards. If a full time
Employee is designated as a full time extra, each year such person must report
to the track each race day at the specified reporting time at least a number of
days equal to seventy-five percent (75%) of the live racing program in order to
maintain status as a full time extra Employee. Death in the family, documented
accidental injury or illness to Union employees or an immediate family member
will not count toward Saturday and Sunday absences.

 

6.4(B)                 In order to maintain status as a part time
Employee, each such Employee must report for work each Friday, Saturday, Sunday
and holiday program, or each Saturday, Sunday and holiday program (as specified
by the Employee on their availability card) at the PNGI Charles Town Gaming
Limited Liability Company. Any part time Employee who fails to work each
such specified day and such absence is not excused by the Employer, shall not
earn or accrue seniority for the year in which such absences occur. If any
Employee, whether regular or part time, reports to work, and has not been
notified not to report for work as specified in Paragraph 3.4 of

 

11

 

Article 3,
such Employee shall be considered, for the purpose of seniority, to have worked
that day. Full time employees and part time Employees shall receive
premium pay (time and one-half) for all hours worked on Sundays, Memorial Day, July 4,
Labor Day, Thanksgiving, Christmas Eve and New Year’s Day. To be eligible for
premium pay on Sundays, Memorial Day, July 4, Labor Day, Thanksgiving,
Christmas Eve and New Year’s Day, an employee must work his/her regular
scheduled working day before the Sunday, Memorial Day, July 4, Labor Day,
Thanksgiving, Christmas Eve and New Year’s Day and his/her regular scheduled
working day after if it is the day after Sunday, Memorial Day, July 4,
Labor Day, Thanksgiving, Christmas Eve and New Year’s Day. If a holiday falls
on Sunday, premium pay will be paid on the Monday on which that holiday is
celebrated; however there shall be no stacking of premium pay. Excused absences
will count, for purposes of this paragraph, as if that day was a work day. The
Employer shall not unreasonably refuse to grant an excused absence.

 

6.5                                 An Employee shall lose all his accrued
seniority in the event such Employee:

 

(A)                              Voluntarily quits or is discharged for cause.

 

(B)                                Fails, after a lay-off or the commencement of
any racing meet, to report for work for two (2) consecutive racing days
after being notified to do so, unless such Employee notifies the Employer, in
advance of such reporting date, that such Employee intends to be absent and
presents an acceptable reason for such absence.

 

(C)                                Is absent from work for any reason whatsoever
for three (3) working days without the approval of the Employer.

 

(D)                               An Employee shall earn no seniority in any
year in which he fails to work a number of days equal to seventy-five percent
(75%) of the total days scheduled for live racing programs, as provided, in
Paragraph 6.4(A) of this Article.

 

This requirement is based on
racing programs being conducted on Sundays, holidays and one weekday each week
during daytime hours and all other days during night-time hours. If racing
programs are conducted on more than one weekday (except holidays) in any week
during daytime hours, then the 75% rule shall not apply to any such
weekday daytime programs in excess of one in any one week.

 

12

 

6.6                                 Permanent Vacancies - 
Notwithstanding any provision contained in this Agreement to the
contrary, in the event a vacancy occurs in a regular permanent job, the
Employer in its sole discretion shall determine if such a vacancy shall be filled.
In filling such vacancy, the Employer shall comply with the provisions of Subsection 6.1
of this Article and shall select the eligible and qualified Employee from
within the department where the new job or permanent vacancy occurs on the
basis of track seniority. If such position or vacancy is not filled from within
the department in which it occurred, it may be filled by an eligible and
qualified Employee from other departments on the basis of track seniority. The
senior eligible Employee bidding on such job, if qualified, shall be given a
trial period on such new job of one (1) to five (5) days as
management sees fit. In the event management does not deem such Employee
properly qualified to perform such job, then after a trial period ranging
in management’s discretion from one (1) to five (5) days, management
shall have the sole discretion to return such Employee back to his former job,
in which event, the next senior qualified eligible Employee who shall bid for
such job shall be given a like trial. When an Employee is transferred to
another job, classification or department as a result of job bidding, such
transfer shall be permanent. The Employer shall have the right to remove an
Employee from any Department because of lack of work, but must honor reverse seniority
when doing so. Such Employees so removed may bid for another job for which
such Employee is eligible and qualified at the track on the basis of track
seniority.

 

6.7                                 Temporary Transfers - The filling of all temporary vacancies
shall be in accordance with the seniority provisions of this contract, if such
temporary vacancy does not continue for more than fifteen (15) working days. If
such continues for more than fifteen (15) working days, Employees shall bid on
that job on a temporary basis in the same manner set forth in the Subsection 6.6
of this Article VI for bidding on permanent vacancies. Upon the return of
the absent Employee, the Employee who bid on that temporary vacancy shall
return to his or her former position and the returning Employees shall fill his
or her regular position. An Employee who is transferred from his or her regular
job to fill a temporary vacancy not lasting more than fifteen (15) days, shall
be paid his or her regular rate, unless the job to which he or she is

 

13

 

transferred
pays a higher rate, in which case the higher rate shall be paid. Any full time
extra Employee who fills a temporary vacancy shall be paid the rate for such
vacant position. If an Employee bids on a temporary vacancy after the said
fifteen (15) day period, such Employee shall be paid the rate for such vacancy
while he or she is temporarily filling that position. Upon that Employee’s
return to his or her regular job, he or she shall be paid the regular rate for
his or her regular job.

 

6.8                                 Lay-Off - It is agreed that while the determination whether or not there
should be lay-offs is the sole prerogative of the Employer, should a reduction
in force be necessary, lay-offs will take place in the reverse order by track
seniority applied within the department affected. In the event that rehiring
takes place, the Employees shall be recalled to work in accordance to their
track seniority within the department affected.

 

ARTICLE 7
- LEAVE OF ABSENCE

 

7.1                                 An Employee shall not be granted a leave of
absence without prior consent of the Employer, which consent shall not be
arbitrarily withheld. Such leave of absence granted the Employee shall not
cause him to lose any prior seniority rights. Leaves of absences will be approved
by a Committee consisting of the Mutuel Manager, a Management designee selected
by the Mutuel Manager, two (2) members selected by the Union and the
General Manager who will vote only in the event of ties.

 

7.2                                 The Employer shall notify the Union of all
requests for leaves of absence and shall give the Union a reasonable
opportunity to make any comments in regard to such request as it desires prior
to the effective date of such leave. However, the Employer’s decision on such
request shall be final.

 

7.3                                 All requests for a leave of absence shall be
first considered under the Federal Family and Medical Leave Act. Employees may receive
for their own serious health condition, as defined under the Family Medical
Leave Act, up to a total of four (4) months of unpaid leave, which
includes twelve (12) weeks of Federal Family Medical Leave. Notwithstanding any
provision to the contrary in this Article 7, no leave of absence shall be
granted to any Employee for the purpose of accepting full time employment elsewhere.

 

14

 

7.4                                 An Employee’s seniority status and date shall
not be affected by absence from work on account of:

 

(A)                              Family Medical Leave of up to four (4) months.

 

(B)                                Injury covered by State Workers’ Compensation
Law.

 

(C)                                Time spent on approved leave of absence for
service in the Armed Forces of the United States, provided the Employee returns
to Employer’s service within the time frame provided under the Uniformed
Services Employment and Reemployment Rights Act of 1994.

 

(D)                               Service as a regularly impaneled member of a
State or Federal Jury.

 

(E)                                 Layoff, provided he is reemployed by Employer
within a period of one month after being recalled following such layoff.

 

(F)                                 A regularly approved leave for reasons other
than sickness, occupational injury, jury duty or military service, provided
such personal leave of absence does not exceed one month in length.

 

(G)                                A regularly approved leave for full time
employment as an officer or agent of Union, provided such leave does not exceed
one month in length.

 

Employees granted leave of
absence for any of the foregoing reasons will not accrue further seniority
during the term of the leave of absence. In the event of a dispute, the
decision of the Leave of Absence Committee will be final.

 

ARTICLE 8
– DISCHARGE

 

8.1                                 No employee
shall be discharged or displaced except for just cause.

 

8.2                                 Within two (2) working days or
seventy-two (72) hours, whichever is shorter of any discharge, the Employer
shall notify, in writing, the Union and the Employee affected as to the reason
for such discharge. In the event the Union disputes such discharge, the matter
shall be submitted to arbitration in accordance with Article 9 herein. The
arbitrator shall have the authority to make the final determination of such
dispute and in the event he finds such discharge to have been improper, he may order
reinstatement or such other remedies as he deems appropriate, including
awarding back pay and benefits. The Employer agrees that it will cooperate with
the Union to expedite the submission of any disputed discharges to an
arbitrator

 

15

 

and,
if the arbitrator agrees, upon the Union’s request, to accept an oral ruling
from the arbitrator at the conclusion of the hearing.

 

8.3                                 It is agreed that discharge for dishonesty,
pilferage, bellringing or discharge of an Employee for leaving his or her post
or work place and engaging in physical and/or oral confrontation with any
member of the public, including friends, spouses, relatives or another Employee
of the Employer shall not be subject to the grievance procedure provided
herein.

 

Employees discharged or
disciplined for use of alcohol or drugs or being under the influence of alcohol
or drugs while on duty or for dishonesty, pilferage or bellringing, shall be
entitled to arbitrate only the question of their guilt or innocence. If found
guilty, the arbitrator must confirm the remedy imposed by the Employer.

 

8.4                                 It is agreed that any Employee who shall be
denied bonding coverage by the Employer’s bonding company or whose bond shall
be revoked for any reason, shall be dismissed. Such discharge shall not be
subject to the grievance procedure and shall be final. If, subsequent to such
refusal to bond or revocation of bond, the bonding company shall agree to bond
such Employee or to cancel such revocation and reinstate said bond, such
Employee shall be entitled to be reemployed in accordance with his or her
seniority as of his or her termination date, but without back pay or benefits
and such person shall lose his or her seniority for such period when the bond
was denied or revoked.

 

8.5                                 The Employer recognizes the principles of
progressive discipline. The employer agrees to delete written reprimand letters
from an employee’s file one year after the date of the reprimand letter.

 

16

 

ARTICLE 9
- GRIEVANCE PROCEDURE

 

9.1                                 In the event that any dispute or controversy
shall arise during the life of this Agreement as to the interpretation or
application of this Agreement or any part thereof, it shall be handled in
the following manner:

 

STEP 1.       The aggrieved Employee or any authorized representative of the Union
shall first discuss the grievance with the company supervisor or representative
within ten (10) calendar days of the event resulting in a dispute or
controversy.

 

STEP 2.       In the event the grievance is not resolved at that level, then a
representative of the Union shall meet with an officer or duly designated
representative of the Employer within ten (10) calendar days of such first
meeting and a written decision is to be rendered by management within ten (10) days
of the Step 2 meeting.

 

STEP 3.       If no satisfactory settlement is reached within ten (10) calendar
days of the meeting in Step 2, then either party may submit the grievance
to arbitration. Any grievance not carried to the next step of the grievance
procedure within the prescribed time limits shall be automatically waived and
considered resolved upon the basis of management’s last response. The time
limits as set forth above may be extended by the mutual agreement of the
parties in writing. Any dispute arising under this Agreement may be
submitted to arbitration, provided, however, that the arbitrator shall have no authority
to alter the terms of this Agreement. In the event a grievance is submitted to
arbitration, the arbitrator will be selected from a list supplied from the
Federal Mediation and Conciliation Service and the arbitration shall be
conducted under the rules and regulations of the Federal Mediation and
Conciliation Service then in effect. The costs of any such arbitration shall be
borne equally between the Union and the Employer.

 

ARTICLE 10
- MILITARY SERVICE

 

With respect to the
reemployment of Employees who have been or shall be inducted into the Armed
Forces of the United States, the Employer shall comply with its obligation as
provided in the Uniformed Services Employment and Reemployment Rights Act of
1994.

 

17

 

ARTICLE 11
- SHORTAGES AND OVERAGES

 

11.1                           Each Employee shall be financially
responsible for his or her shortages and the liability therefor shall be
determined by the Employer. All shortages shall be paid at reporting time the
following day, unless otherwise provided by the Employer. Failure to pay such
shortages shall result in the suspension of the Employee.

 

11.2                           The Employer shall maintain an accounting of
all overages and shortages for each Employee affected and such accounting shall
be made available for inspection by each Employee affected at all reasonable
times. Employees shall be credited with the total amount of overage in their
respective accounts on the last day of each meet up to the total amount of
shortages which they may incur on that day.

 

11.3                           If it appears to the Employer’s satisfaction
that a tote machine malfunction caused an Employee shortage, the Employee shall
not be responsible for the shortage.

 

11.4                           Employees will be permitted to continue to
use a self audit procedure during their work shifts so long as the use of that
function does not become “excessive” and diminish work time. The negotiated
definition of “excessive” by the parties was that access by an employee of that
function any more than five (5) times per shift would result in a
progressive disciplinary action being taken against an employee.

 

ARTICLE 12
– EXCLUSIONS

 

12.1                           The Employer and the Union agree that
Employees not covered by this Agreement can continue to perform the normal
work that they performed heretofore, some of which may be work which is
also performed by members of this unit, provided, however, that the Employer

 

18

 

shall
not use excluded Employees to do regular journeyman work so as to replace or displace
the regular Employees within the bargaining unit.

 

12.2                           The Employer agrees that if a regular job is
open and available at the beginning of the program prior to the first race and
Management wishes that job to be performed during that program, then an
additional Employee shall be assigned. If a job should become open after the
first race begins and no Union Employee is available, or in the event of an
emergency, then excluded Employees, including supervisors, may perform that
work.

 

ARTICLE 13
- NO STRIKE OR LOCKOUT

 

13.1                           During the term of this Agreement, the Union
agrees on behalf of itself and each of its members  that there shall be no authorized strike of
any kind and there shall be no boycott, picketing, work stoppage, slowdown or
any other type of organized interference, coercive or otherwise with the
Employer’s business or with third parties having business with the Employer.

 

13.2                           In the event any violation of the previous
paragraph occurs which is unauthorized by the Union, the Employer agrees that
there shall be no liability on the part of the International or Local
Union or any of their officers or agents, provided that in the event of such
unauthorized action the Union first meets the following conditions:

 

(a)                                  The Union shall declare publicly that such
action is unauthorized by the Union, if requested to do so by the Employer.

 

(b)                                 The Union shall promptly order its members to
return to work, notwithstanding the existence of a picket line, if requested to
do so by the Employer.

 

(c)                                  The Union shall not question the unqualified
right of the Employer to discipline or discharge Employees engaging in,
participating in, or encouraging such action, unless the action by the Employer
is unlawful or discriminatory. It is understood that such action on the part of
the Employer shall be final and binding upon the Union and its members, and
shall in no case be construed as a violation by the Employer of any provision
of this Agreement,

 

19

 

unless
the action by the Employer is discriminatory. However, an issue of fact as to
whether or not any particular Employee has engaged in, participated in, or
encouraged any such violation may be subject to arbitration.

 

13.3                           There shall be no lockout by the Employer.

 

13.4                           It shall be a violation of this Agreement and
grounds for discharge or discipline, for any Employee, or for the Employees
collectively, to refuse to go through a picket line of another union
established at the premises of the Employer whose Employees are on strike.

 

13.5                           In the event that a strike or lockout in
violation of the foregoing provisions of this section shall occur, the
nonbreaching party shall have the option of rescinding this Agreement after
such breach has continued for more than fifteen (15) days, unless the dispute
is settled and the strike or lockout ends before such option is exercised. Written
notice of intent to exercise such option shall be given at least five (5) days
before it is exercised.

 

Exercise of the option to
rescind this Agreement shall not affect the right of the rescinding party to
bring an action for damages for the breach committed by the other, and shall
not affect Employer’s right to discipline, as provided herein, any Employee
taking part in a prohibited strike.

 

The failure of Employer or
Union to exercise the privilege hereinabove granted to rescind this Agreement
in event of a breach thereof by the other party, shall not constitute a waiver
on its part of its right to exercise such option should a subsequent strike
or stoppage of production or lockout occur.

 

ARTICLE 14
– NOTICE

 

Whenever notice is required
to be given hereunder, it shall be given to the parties hereto at their
respective address by registered or certified mail, and in the event that
notice is required to be given to any Employee, it shall be given by registered
or certified mail, addressed to such Employee at his or her last known address
appearing on the payroll records of Employer.

 

20

 

ARTICLE 15
- MANAGEMENT’S PREROGATIVES

 

A.                       Except to the extent abridged by a provision
of this Agreement, the Employer reserves and retains, solely and exclusively in
its own uncontrolled discretion, all of its regular and customary functions and
its inherent right to manage the business, which includes, but is not limited
to, the right to establish or continue policies, practices or procedures for
the conduct of its business and from time to time as it sees fit, to change,
alter or abolish such policies, practices or procedures; to assign Employees;
to determine and from time to time redetermine the number, location and types
of its operations and the methods, processes or materials to be employed; to
discontinue processes or operations or to discontinue performances by Employees
the Employer may deem advisable, to determine the number of hours per day
or per week, the number of days per week and the number of weeks per year its
operation shall be carried on; to select and determine the number and type of
Employees required; to assign work to such Employees in accordance with the
requirements as determined by management; to establish and change work
schedules and assignments; to transfer or promote Employees, to demote,
discipline or terminate Employees for just cause; or to lay-off or otherwise
relieve Employees from duty for lack of work or any other legitimate reason by
seniority. These rights shall not be used for the purpose of discrimination
against any member of the Union and shall not be exercised in violation of the
terms of this Agreement.

 

The Employer will make every good faith effort to employ full time
rather than part time Employees where feasible and shall not hire part time
Employees for the sole purpose of not providing benefits which would be
available to full time Employees.

 

B.                                     The Employer shall have the right, from time
to time, to make such reasonable rules and regulations for the conduct of
its business not inconsistent with the provisions hereof as it may deem to
comply with such rules and regulations to be enforced by management.

 

21

 

ARTICLE 16
- FUNERAL LEAVE

 

Employees with regular assignments employed on a regular full-time
basis who have at least ninety (90) days of regular full-time service with the
Company will be granted three (3) days off without loss of pay in the
event of a death in the family, which for the purpose of this Agreement shall
mean mother, father, sister, brother, spouse, child, significant other,
mother-in-law, father-in-law, grandparents, grandchild, step-children and
foster children. This may be taken at the most convenient time related to
the death for the employee, who shall be paid at the straight time rate of pay
earned as if the Employee would have worked these three days.

 

ARTICLE 17
- TECHNOLOGICAL DISPLACEMENTS

 

Should a technological
displacement occur by reason of a new machine or mechanical improvement or
process in the operation of a department, the Company will attempt to place any
displaced Employee in a classification for which he is qualified by track
seniority close to his former rate of pay. The Company agrees that it will meet
with the Union to discuss the problems which may arise as a result of
technological displacements; however, such Employee may exercise track
seniority to bid into another classification or department for which he is
qualified.

 

ARTICLE 18
– UNIFORMS 

 

18.1                           Any Employee who is required by the Employer
to wear a special uniform, shall have the same furnished and maintained by the
Employer. The Employer shall have the right to prescribe reasonable rules and
regulations of appropriate dress.

 

18.2                           Prior to any Employee being required to wear
any uniform, the Employer will define such uniforms and any permissible
substitutions thereto.

 

22

 

18.3                           During each calendar year of this Agreement,
the Employer will pay to each Employee a One Hundred Dollars ($100.00) uniform allowance.
This allowance is to be used by the Tellers to purchase black trousers and
black shoes and the Employer will provide the employee with a uniform shirt
or blouse for each day of the week they are regularly scheduled to work up to
five, plus either a bow or cross tie, and a company logo cardigan sweater. Employees
may purchase additional shirts/blouses, ties and cardigan sweaters at the
company’s cost. The jockey Valets will use their $100 allowance to purchase
safety boots which shall be in conformance with the Employer’s designation of
acceptable boots of a uniform style and color common for all employees. The
type and style of uniforms will be discussed by the Employer with a Committee
from the Union not to exceed five (5) members, with the understanding that
the final decision will be made by the Employer.

 

ARTICLE 19
– SEVERABILITY

 

If any section or part thereof
of this Agreement should be held invalid by operation of law or by any body,
commission or tribunal of competent jurisdiction, or if compliance with or
enforcement of any section or part thereof should be restrained by
such body, commission or tribunal pending a final determination as to its
validity, the remainder of this Agreement or the application of such section or
part thereof to persons or circumstances other than those as to which it
has been restrained, as set forth above, shall not be affected thereby. In the
event that any section or part thereof of this Agreement is held
invalid or unenforceable or the compliance with which has been restrained, as
above set forth, the parties shall enter into immediate collective bargaining
negotiations upon the request of the Union for the purpose of arriving at a
mutually satisfactory replacement for such section or part thereof
during the period of invalidity or restraint. If the parties do not agree on a
mutually satisfactory replacement provision, either party may submit the
question to arbitration in accordance with Article IX and the arbitrator
shall have the authority to determine the substance of such substitute
provision.

 

23

 

ARTICLE 20
- PENSION PLAN

 

The parties and their predecessors hereto have, prior to the execution
of this Agreement, executed documents necessary to implement Charles Town Races
Future Service Retirement Plan, including the Trust Agreement establishing the
fund of said Plan. The Employer has, in turn, agreed to be bound by said Plan
and the provisions thereof. If Employer’s obligation to make contributions to
the said fund shall cease or terminate, or be reduced to a level which affects
the actuarial solvency of said fund, both pursuant to the provisions of said
Trust Agreement, then, upon request therefore by the Union, Employer shall,
within thirty (30) days of said request, discuss with the Union any proposal of
the Union regarding Employer’s continuing or increasing contribution to said
Fund.

 

ARTICLE 21
- VACATIONS

 

Each Union Employee with
five (5) or more years service, who is classified as a regular, full-time
Employee, shall receive one-half (1⁄2) day’s paid vacation for each forty (40)
full days worked in each calendar year based on live racing days. Each Union
Employee with ten (10) or more years service, who is classified as a
regular, full-time Employee, shall receive one (1) day’s paid vacation for
each forty (40) full days worked in each calendar year based on live racing
days. Each Union Employee with twenty (20) or more years service, who is
classified as a regular, full-time Employee, shall receive one and one-quarter
(1 1/4) day’s paid vacation for each forty (40) full days worked in each
calendar year based on live racing days.

 

Earned vacation pay will be paid one (1) week following the last
racing date in the year.

 

ARTICLE 22
- SUNDAY RACING

 

Notwithstanding anything contained hereinabove to the contrary, Sunday
racing may be held as provided by law.

 

24

 

ARTICLE 23 – VIDEO LOTTERY AGREEMENT

 

The
Union agrees that upon the effective date of this Agreement, it will have its
staff representative and Local President sign the written, notarized agreement
attached hereto to be presented by the Employer to the West Virginia Lottery
Commission, evidencing the Union’s agreement regarding the allocation of the
proceeds from the video lottery terminals/slot machines as required by West
Virginia Code § 29-22A-7, and that agreement will remain in full force and
effect and irrevocable by the Union and the Employer  during the existence of the collective bargaining
relationship between these parties hereto.

 

ARTICLE 24 - EMPLOYEE BENEFITS

 

Effective January 1,
2006, Employer will, for the life of the Agreement, offer to the membership of
the Union the same PNGI Benefit Plan that is offered during the term of this
Agreement to the non-represented employees at Charles Town Races, including and
limited to health, dental and vision insurance, and the Group Life Insurance
Program (GLIP). Eligibility requirements and cost sharing will be identical to
the terms offered to the non-represented employees during the term of this
Agreement.

 

ARTICLE 25 – JOINT LABOR/MANAGEMENT COMMITTEE

 

The Employer and the Union,
as evidence of attitude and intent, agree that during the life of this
Agreement, individuals from both parties (not to exceed three (3) from
each party) will be designated, in writing, by each party to the other, for the
purpose of meeting quarterly or at the call of either party at mutually
agreeable times, to consider and discuss common problems, which may arise
at PNGI’s operations, including but not limited to suggestions and ideas to
resolve any such common problems and concerns and to generally promote better
understanding with the other. Such meetings will not be for the purpose of
initiating or continuing collective

 

25

 

bargaining,
nor in any way to modify, add to, or detract from the provisions of this
Agreement and such meeting will be exclusive of the Grievance and Arbitration
proceedings in this Agreement, as grievance will not be considered proper
subject at such meetings.

 

The
deliverations and/or recommendations of the Committee may be held in
strict confidence when appropriate and no evidence, either documentation or
testimony, relating to the Committee’s deliverations and/or recommendations
will be admissible in any arbitration proceeding pursuant to Article 9 of
this Agreement.

 

IN WITNESS
WHEREOF, the
parties hereto have caused this Agreement to be executed as  of the day and year first above written.

 

 

	
   

  	
  PNGI CHARLES TOWN GAMING

  
	
   

  	
  LIMITED LIABILITY COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Albert Britton

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  General Manager

  	
   

  
	
   

  
	
   

  
	
  ATTEST:

  	
  /s/
  Phyllis LeTart

  	
   

  
	
   

  	
  Phyllis
  LeTart

  	
   

  
	
   

  	
  Vice
  President

  	
   

  
	
   

  	
  Legal & Business Affairs

  	
   

  
						

 

26

 

	
   

  	
  WEST
  VIRGINIA UNION OF MUTUEL

  CLERKS, LOCAL 533, SERVICE

  EMPLOYEES INTERNATIONAL

  UNION, AFL-CIO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Randall R. Conrad

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
      /s/ Nanie L. Edwards

  	
   

  	
   

  	
   

  
	
   

  	
  4-7-06

  	
   

  	
   

  	
   

  

 

27

 

SCHEDULE A

 

New Rates Effective Retroactively to July 1, 2005 

 

	
   

  	
   

  	
  20 yrs

  	
   

  	
  10-19 yrs

  	
   

  	
  2-9 yrs

  	
   

  	
  2 yrs or less

  	
   

  	
  Prob.

  	
   

  
	
  Position Title:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terminal Operator

  	
   

  	
  72.80

  	
   

  	
  72.05

  	
   

  	
  71.40

  	
   

  	
  61.55

  	
   

  	
  59.55

  	
   

  
	
  Jockey Valet

  	
   

  	
  65.25

  	
   

  	
  64.50

  	
   

  	
  63.75

  	
   

  	
  57.00

  	
   

  	
  55.00

  	
   

  
	
  Messengers

  	
   

  	
  62.80

  	
   

  	
  62.05

  	
   

  	
  61.30

  	
   

  	
  55.80

  	
   

  	
  53.80

  	
   

  

 

New Rates
Effective 1/1/2006

 

	
   

  	
   

  	
  20 yrs

  	
   

  	
  10-19 yrs

  	
   

  	
  2-9 yrs

  	
   

  	
  2 yrs or less

  	
   

  	
  Prob.

  	
   

  
	
  Position
  Title:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terminal
  Operator

  	
   

  	
  76.80

  	
   

  	
  76.05

  	
   

  	
  75.40

  	
   

  	
  65.55

  	
   

  	
  63.55

  	
   

  
	
  Jockey Valet

  	
   

  	
  69.25

  	
   

  	
  68.50

  	
   

  	
  67.75

  	
   

  	
  61.00

  	
   

  	
  59.00

  	
   

  
	
  Messengers

  	
   

  	
  66.80

  	
   

  	
  66.05

  	
   

  	
  65.30

  	
   

  	
  59.80

  	
   

  	
  57.80

  	
   

  

 

New Rates
Effective 1/1/2007

 

	
   

  	
   

  	
  20 yrs

  	
   

  	
  10-19 yrs

  	
   

  	
  2-9 yrs

  	
   

  	
  2 yrs or less

  	
   

  	
  Prob.

  	
   

  
	
  Position
  Title:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terminal
  Operator

  	
   

  	
  80.80

  	
   

  	
  80.05

  	
   

  	
  79.40

  	
   

  	
  69.55

  	
   

  	
  67.55

  	
   

  
	
  Jockey Valet

  	
   

  	
  73.25

  	
   

  	
  72.50

  	
   

  	
  71.75

  	
   

  	
  65.00

  	
   

  	
  63.00

  	
   

  
	
  Messengers

  	
   

  	
  70.80

  	
   

  	
  70.05

  	
   

  	
  69.30

  	
   

  	
  63.80

  	
   

  	
  61.80

  	
   

  

 

New Rates
Effective 1/1/2008

 

	
   

  	
   

  	
  20 yrs

  	
   

  	
  10-19 yrs

  	
   

  	
  2-9 yrs

  	
   

  	
  2 yrs or less

  	
   

  	
  Prob.

  	
   

  
	
  Position
  Title:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terminal
  Operator

  	
   

  	
  83.80

  	
   

  	
  83.05

  	
   

  	
  82.40

  	
   

  	
  72.55

  	
   

  	
  70.55

  	
   

  
	
  Jockey Valet

  	
   

  	
  76.25

  	
   

  	
  75.50

  	
   

  	
  74.75

  	
   

  	
  68.00

  	
   

  	
  66.00

  	
   

  
	
  Messengers

  	
   

  	
  73.80

  	
   

  	
  73.05

  	
   

  	
  72.30

  	
   

  	
  66.80

  	
   

  	
  64.80

  	
   

  

 

New Rates
Effective 1/1/2009 through December 31, 2010

 

	
   

  	
   

  	
  20 yrs

  	
   

  	
  10-19 yrs

  	
   

  	
  2-9 yrs

  	
   

  	
  2 yrs or less

  	
   

  	
  Prob.

  	
   

  
	
  Position
  Title:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terminal
  Operator

  	
   

  	
  85.80

  	
   

  	
  85.05

  	
   

  	
  84.40

  	
   

  	
  74.55

  	
   

  	
  72.55

  	
   

  
	
  Jockey Valet

  	
   

  	
  78.25

  	
   

  	
  77.50

  	
   

  	
  76.75

  	
   

  	
  70.00

  	
   

  	
  68.00

  	
   

  
	
  Messengers

  	
   

  	
  75.80

  	
   

  	
  75.05

  	
   

  	
  74.30

  	
   

  	
  68.80

  	
   

  	
  66.80

  	
   

  

 

28Exhibit
10.39

STOCK
PURCHASE AGREEMENT

 

THIS
STOCK PURCHASE AGREEMENT is made and entered into this 18th day of April, 2006,
by and among URANIUM RESOURCES, INC., a Delaware corporation (the “Company”),
and the undersigned Persons (individually sometimes referred to as a “Purchaser”
and collectively the “Purchasers”):

Definitions.  For the purposes of this Purchase Agreement:

“2006
SEC Filings” shall mean 10-KSB for 2005 filed with the Securities and Exchange
Commission on March 31, 2006, together with the Company’s Press Releases issued
in 2006 and Forms 8-K filed with the Commission in 2006, and attached hereto as
Exhibit A.

“Closing”
shall mean the act of consummating the purchase and sale of the Shares
contemplated herein.

“Closing
Date” shall mean the date upon which the Initial Closing or any Subsequent
Closing is carried out.

“Commission”
shall mean the Securities and Exchange Commission or any other federal agency
at the time administering the Securities Act.

“Common
Stock” shall mean the Company’s Common Stock, $0.001 par value per share.

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar
federal statue and the rules and regulations of the Commission thereunder, all
as the same shall be in effect at the time.

“Holder”
shall mean each of the Purchasers, or their successors and assigns.

“Material
Adverse Effect” means a material adverse affect on (a) the assets, liabilities,
business, properties, operations, financial condition, or results of operations
of the Company and any subsidiaries, taken as a whole, or (b) the ability of
the Company to perform its obligations pursuant to this Agreement or under the
agreements or instruments to be entered into or filed in connection herewith.

“Person”
shall mean a natural person, corporation, partnership, limited liability
company, trust or any other entity, other than a governmental entity,
recognized by statute in its jurisdiction of formation as having legal
existence.

“Purchase
Agreement” shall mean this Stock Purchase Agreement by and among the Company
and the Purchasers.

“Registrable
Securities” shall mean the shares of Common Stock held by the Holders;
provided, however, that Registrable Securities shall not include such
securities that have been sold (a) to or through a broker or dealer or
underwriter in a public distribution or a public securities transaction or (b)
pursuant to Rule 144(k) promulgated under the Securities Act.

The
terms “register,” “registered” and “registration” refer to a registration
effected by preparing and filing a registration statement with the Commission
in compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

 

 

“Registration
Expenses” shall mean all expenses, except as otherwise stated below, incurred
by the Company in complying with Section 7.1 hereof, including, without
limitation, all registration, qualification and filing fees, printing expenses,
escrow fees, fees and disbursements of counsel for the Company, blue sky fees and
expenses, the expense of any special audits incident to or required by any such
registration (but excluding the compensation of regular employees of the
Company which shall be paid in any event by the Company).

“Securities
Act” shall mean the Securities Act of 1933, as amended, or any similar federal
statute and the rules and regulations of the Commission thereunder, all as the
same shall be in effect at the time.

“Selling
Expenses” shall mean all underwriting discounts, selling commissions and stock
transfer expenses applicable to the securities registered by the Holders and,
except as set forth above, all reasonable fees and disbursements of counsel for
any Holder.

“Shares”
shall mean the shares of Common Stock issued to the Purchasers pursuant to this
Purchase Agreement and any other securities issued in respect of such
securities upon any stock split, stock dividend, recapitalization, merger,
consolidation or similar event.

“Subsidiary”
or “Subsidiaries” shall mean a corporation or corporations of which the Company
shall at the time own directly or indirectly 50% or more of the outstanding
common stock and all of the outstanding stock of any other class, and the term “wholly-owned
Subsidiary” shall mean a corporation of which the Company shall at the time own
directly or indirectly all of the outstanding stock, except for directors’
qualifying shares.

Representations and
Warranties of the Company.  The
Company represents and warrants that on the date hereof and each Closing Date:

Organization.  The Company is a duly incorporated and
validly existing corporation in good standing under the laws of the state of
Delaware with all necessary corporate power to enter into and perform this
Purchase Agreement, issue and sell the Shares and carry on the business now
conducted by it.  The Company is duly
qualified and in good standing as a foreign corporation in all jurisdictions in
which the nature of its business or the character of the property owned by it
makes such qualification necessary, and is duly authorized, qualified and
licensed under all laws, regulations, ordinances or orders of public
authorities to carry on its business in the places and in the manner presently
conducted.

All
necessary corporate proceedings have been taken by the board of directors of
the Company to authorize the execution, delivery and performance of this
Purchase Agreement and the transactions contemplated hereby.  No action is required by the stockholders of
the Company in connection with the execution, delivery and performance of this
Purchase Agreement.  The Agreement has
been duly authorized, executed and delivered and is enforceable against the
Company in accordance with its terms. 
Upon issuance of the Shares at the Closing and receipt of the
consideration to be paid for the Shares, the Shares will be duly authorized,
validly issued, fully paid and non-assessable.

No Legal Obstacle.  Neither the consummation of the transactions
contemplated by this Purchase Agreement nor compliance with the provisions of
this Purchase Agreement nor issuance of the Shares, will result in any breach
or violation of any of the provisions of, or constitute a default under, the
charter or by-laws of the Company, or any provision of law, agreement or other
instrument which will remain in effect after the issue and sale of the Shares 

 

 

and
to which the Company is a party or by which it is bound, or of any applicable
order or regulation of any governmental authority having jurisdiction, or
result in the creation under any other agreement or instrument of any lien or
encumbrance upon any assets of the Company.

Tax Returns.  The Company and its Subsidiaries have filed
all federal, state and local tax returns which are required to be filed and
have paid, or made adequate provision for the payment of, all taxes which have
or may become due pursuant to said returns or otherwise or to assessments
received by the Company or its Subsidiaries, except such as are being
vigorously contested in good faith.  The
Company has made adequate provision for all current taxes.

Capitalization.  The authorized capital stock of the Company
on the date hereof consists of 200,000,000 shares of Common Stock, $.001 par
value per share (the “Common Stock”), of which 41,056,023 shares are issued and
outstanding and 6,896,729 shares are reserved for issuance under stock option
plans, deferred compensation plans and convertible notes.

Except
as set forth above, there are no outstanding options, warrants, scrip, rights
to subscribe for, puts, calls, rights of first refusal, agreements, understandings,
claims or other commitments or rights, of any character whatsoever relating to,
or securities or rights convertible into, exercisable for, or exchangeable for
any shares of capital stock of the Company, or arrangements by which the
Company is or may become bound to issue additional shares of capital stock of
the Company.  The issuance and sale of
the Securities will not obligate the Company to issue shares of Common Stock or
other securities to any Person (other than the Purchasers) 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.  No further approval or authorization of any
stockholder, the Board of Directors of the Company or others is required
for the issuance and sale of the Securities. 
There are no stockholders agreements, voting agreements or other similar
agreements with respect to the Company’s capital stock to which the Company is
a party or, to the knowledge of the Company, between or among any of the
Company’s stockholders.  The Company’s
Certificate of Incorporation and the Company’s By-laws, each as in effect
on the date hereof, filed as exhibits to the Company’s SEC Documents, are true
and correct copies of each such document.

Finders.  All negotiations relative to this Purchase
Agreement and the transactions contemplated herein have been carried on by the
Company with Rice, Voelker L.L.C. (“Rice Voelker”) on behalf of the Purchasers
in such manner as not to give rise to any valid claim against the Company for a
finder’s fee, brokerage commission or like payment, except for payment by the
Company of a commission to Rice Voelker.

Authorization and Approvals.  The execution, delivery and performance of
this Purchase Agreement do not require any approval or consent on the part of,
or filing, registration or qualification with, any governmental body, federal,
state or local that has not been obtained or performed or any third person,
pursuant to any agreement or otherwise, except for requisite filings under
state and federal law to permit the private offering of the Shares in
compliance with exemptions from registration under such laws, all of which will
be prepared and filed by the Company in compliance with the law.

No Conflicts; No Violation.

The execution, delivery and
performance of this Agreement and the consummation by the Company of the
transactions contemplated hereby and thereby do not and will not
(i) conflict with or result in a violation of any provision of the
Certificate of Incorporation or 

 

 

By-laws, (ii) violate or conflict with, or
result in a breach of any provision of, or constitute a default (or an event
which with notice or lapse of time or both could become a default) under, or
give to others any rights of termination, amendment (including without
limitation, the triggering of any anti-dilution provision), acceleration
or cancellation of, any agreement, indenture, patent, patent license, or
instrument to which the Company is a party, or (iii) result in a violation
of any law, rule, regulation, order, judgment or decree (including U.S. federal
and state securities laws and regulations and regulations of any self-regulatory
organizations to which the Company or its securities are subject) applicable to
the Company or by which any property or asset of the Company is bound or
affected (except for such conflicts, breaches, defaults, terminations,
amendments, accelerations, cancellations and violations as would not,
individually or in the aggregate, have a Material Adverse Effect).

The Company is not in violation
of its Certificate of Incorporation, By-laws or other organizational
documents and the Company is not in default (and no event has occurred which
with notice or lapse of time or both could put the Company in default) under,
and the Company has not taken any action or failed to take any action that (and
no event has occurred which, without notice or lapse of time or both) would
give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Company is
a party or by which any property or assets of the Company is bound or affected,
except for possible defaults as would not, individually or in the aggregate,
have a Material Adverse Effect.

The Company is not conducting its
business in violation of any law, ordinance or regulation of any governmental
entity, the failure to comply with which would, individually or in the
aggregate, have a Material Adverse Effect.

Except as specifically
contemplated by this Agreement and as required under the Securities Act and any
applicable state securities laws or any listing agreement with any securities
exchange or automated quotation system, the Company is not required to obtain
any consent, authorization or order of, or make any filing or registration
with, any court or governmental agency or any regulatory or self regulatory
agency in order for it to execute, deliver or perform any of its obligations
under this Agreement or to issue and sell the Shares in accordance with the
terms hereof.

SEC Documents, Financial Statements.  The Company has filed all reports, schedules,
forms, statements, and other documents required to be filed by it with the SEC
pursuant to the reporting requirements of the Securities Act and the Exchange
Act (all of the foregoing filed prior to the date hereof and all exhibits
included therein and financial statements and schedules thereto and documents
(other than exhibits) incorporated by reference therein, being hereinafter
referred to herein as the “SEC Documents”). 
As of their respective dates, the SEC Documents, as the same have been
amended, complied in all material respects with the requirements of the
Securities and Exchange Act of 1934 or the Securities Act, as the case may be,
and the rules and regulations of the SEC promulgated thereunder applicable to
the SEC Documents, and none of the SEC Documents, at the time they were filed
with the SEC, 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.  As of their
respective dates, the financial statements of the Company included in the SEC
Documents complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with
respect thereto.  Such financial
statements have been prepared in accordance with U.S. generally accepted
accounting principles, consistently applied, during the periods involved
(except (i) as may be otherwise 

 

 

indicated
in such financial statements or the notes thereto, or (ii) in the case of
unaudited interim statements, to the extent they may not include footnotes or
may be condensed or summary statements) and fairly present in all material
respects the financial position of the Company as of the dates thereof and the
results of its operations and cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal year-end audit
adjustments).  Except as set forth in the
financial statements included in the SEC Documents, the Company has no material
liabilities, contingent or otherwise, other than liabilities incurred in the
ordinary course of business subsequent to December 31, 2005, and liabilities of
the type not required under generally accepted accounting principles to be
reflected in such financial statements.

Absence of Certain Changes.  Except as disclosed in the SEC Documents,
since the date of the latest audited financial statements included within the
SEC Documents, (i) there has been no event, occurrence or development that
has had or that could reasonably be expected to result in a Material Adverse
Effect, (ii) the Company has not incurred any liabilities (contingent or
otherwise) other than (A) trade payables and accrued expenses incurred in
the ordinary course of business consistent with past practice and
(B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or required to be disclosed in filings made with
the Commission, (iii) the Company has not altered its method of
accounting, and (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital
stock.  The Company does not have pending
before the Commission any request for confidential treatment, except for the
request for confidential treatment of certain uranium supply contracts.

Absence of Litigation.  Except as described in the 2006 SEC
Documents, there is no action, suit, proceeding, inquiry or investigation
before or by any court, public board, government agency, self-regulatory
organization or body pending or, to the knowledge of the Company, threatened
against or affecting the Company, the Common Stock or any of the Subsidiaries
or any of the Company’s or the Subsidiaries’ officers or directors in their
capacities as such.

Manipulation of Price.  Except as described in Section 2.5, the
Company has not, and to its knowledge no one acting on its behalf has, (i)
taken, directly or indirectly, any action designed to cause or to result in the
stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of any of the Shares, (ii) sold, bid for,
purchased, or paid any compensation for soliciting purchases of, any of the
Shares, or (iii), paid or agreed to pay to any person any compensation for soliciting
another to purchase any other securities of the Company.

No Directed Selling Efforts or General Solicitation.  Neither the Company nor any Person acting on
its behalf has conducted any general solicitation or general advertising (as
those terms are used in Regulation D) in connection with the offer or sale of
any of the Shares.

Disclosure.  No information relating to or concerning the
Company set forth in this Agreement, the 2006 SEC Filings or otherwise provided
to the Purchasers in connection with the transactions contemplated hereby,
including without limitation any oral or written statements made or given by
the officers of the Company, or any of the Company’s agents, to any Purchaser,
or any Purchaser’s agent, taken as a whole, contained any untrue statement of a
material fact nor omitted to state any material fact necessary in order to make
the statements made herein or therein, in light of the circumstances under
which they were made, not misleading.  No
event or circumstance has occurred or information exists with respect to the 

 

 

Company
or its business, properties, operations or financial conditions, which, under
applicable law, rule or regulation, requires immediate public disclosure or
announcement by the Company but which has not been so publicly announced or
disclosed.  The Company acknowledges and
agrees that no Purchaser makes or has made any representations or warranties
with respect to the transactions contemplated hereby other than those specifically
set forth in Section 3 hereof.

No Integrated Offering.  Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf, has directly or
indirectly made any offers or sales in any security or solicited any offers to
buy any security under circumstances that would require registration under the
Securities Act of the issuance of the Shares to the Purchasers.

Private Placement.  The offer and sale of the Shares to the
Purchasers as contemplated hereby is exempt from the registration requirements
of the Securities Act. 

Transactions with Affiliates.  Except as disclosed in the 2006 SEC Filings,
none of the officers or directors of the Company and, to the Company’s
knowledge, none of the employees of the Company is presently a party to any
transaction with the Company or any Subsidiary (other than as holders of stock
options and/or warrants, and for services as employees, officers and
directors), including any contract, agreement or other arrangement providing
for the furnishing of services to or by, providing for rental of real or
personal property to or from, or otherwise requiring payments to or from any
officer, director or such employee or, to the Company’s knowledge, any entity
in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner.

Indemnification.  The Company agrees to indemnify and hold
harmless each Purchaser, their representatives, officers, fiduciaries, counsel
and other agents from and against all liability, damage, loss, cost and expense
(including reasonable attorneys’ fees) which they, or any of them, may incur by
reason of the failure of the Company to fulfill any of the terms or conditions
of this Purchase Agreement, or any breach of the representations and warranties
made by the Company herein, or in any document provided by the Company to such
Purchaser.

Representations; Warranties and Acknowledgments of each Purchaser.

Generally.  Each Purchaser represents and warrants to the
Company as follows:

Each Purchaser has received this
Purchase Agreement and the 2006 SEC Filings, has carefully reviewed the
foregoing and has relied solely on the information contained therein,
information otherwise provided to such Purchaser in writing by the Company or
information from books and records furnished by the Company.  Each Purchaser understands that all
documents, records and books pertaining to this investment have been made
available for inspection by its attorney and/or its accountant and itself and
that the books and records of the Company will be available for inspection by
each Purchaser during ordinary business hours at the Company’s principal place
of business.  Each Purchaser and/or its
advisors have had a reasonable opportunity to ask questions of and receive
answers from the Company, or a person or persons acting on its behalf,
concerning the Shares, and all such questions have been answered to the full
satisfaction of each Purchaser.  No oral
representations have been made or oral information furnished to each Purchaser
in connection with the Shares that were in any way inconsistent with this
Purchase Agreement.  Each Purchaser has
received no other offering material except that described in this Section 3.

 

 

Each Purchaser (i) has no need
for liquidity in this investment, (ii) is able to bear the economic risks of an
investment in the Shares for an indefinite period of time, and (iii) at the
present time, could afford a complete loss of such investment.

Each Purchaser recognizes that an
investment in the Shares involves substantial risks.

Each Purchaser is authorized and
otherwise duly qualified to purchase and hold Shares and to enter into this
Purchase Agreement, has its principal place of business as set forth on the
signature page hereof and has not been formed for the specific purpose of
acquiring Shares in the Company unless all of its equity owners qualify as
accredited investors.  Beneficiaries of a
trust will not be considered equity owners of such entity.

Each Purchaser hereby certifies
under penalties of perjury that the Taxpayer Identification Number shown on the
signature page for this Purchase Agreement is its true, correct and complete
Taxpayer Identification Number.

If any Purchaser is, or is acting
on behalf of, an employee benefit plan subject to ERISA (a “Plan”), such Purchaser
or Plan represents and warrants to the Company that such Purchaser has
determined that the purchase of the Shares is consistent with such Purchaser’s
responsibilities under ERISA, including those pertaining to the diversification
of Plan assets; and such Purchaser or Plan (i) is responsible for the decision
to invest in the Company; (ii) is independent of the Company and its respective
affiliates; (iii) is duly authorized and qualified to make such investment
decision; (iv) has not relied on any advice or recommendation of the Company or
any of its affiliates as a primary basis for making the decision to invest in
the Company; and (v) such Purchaser signing this Purchase Agreement is a named
fiduciary of the Plan with respect to the investment of the assets of the Plan.

Purchase for Investment.  Each Purchaser represents and warrants to the
Company that it will acquire the Shares to be purchased by it for its own
account for investment and not with a view to the distribution thereof, and
that it has no present intention of making any distribution or disposition of
them; provided, however, that the disposition of its property shall at
all times be and remain within its control. 
The acquisition of Shares by each Purchaser shall constitute its
confirmation of said representation and warranty.  Each Purchaser understands that the Shares
are being sold to it in a transaction that is exempt from the registration
requirements of the Securities Act, and that the Shares must be held by it and
may not be resold unless they are subsequently registered under the Act or an
exemption from such registration is available. 
Each Purchaser further understands that the Shares will be legended with
a notation that they were acquired for investment in an exempt transaction and
that they may not be resold unless they are subsequently registered under the
Securities Act or unless an exemption from such registration is available.  Each Purchaser that is not a “U.S. person” as
defined in Rule 902 of Regulation S under the Securities Act acknowledges that
the Shares are “restricted securities” as defined in Rule 144 promulgated under
the Securities Act.

Accredited Investor Status.  Each Purchaser represents and warrants that
he, she or it understands that the Company will rely upon the following information
for purposes of its determination that each Purchaser is an “accredited
investor” (as that term is defined in Regulation D promulgated by the SEC under
the Securities Act), and that the Shares will not be registered under the Securities
Act in reliance upon one or more of the exemptions from registration provided
under the Securities Act and Regulation D for nonpublic offerings.  Each 

 

 

Purchaser
represents and warrants that he, she or it is an accredited investor by virtue of
meeting one of the following requirements:

If the Purchaser is an individual
he or she had an individual income in each of the two most recent years and
reasonably expects to have individual income in excess of $200,000 for the
current year or a joint income with his or her spouse in excess of $300,000 in
each of the two most recent years and reasonably  expects to have joint income with such spouse
in excess of $300,000 for the current year; or he or she currently has an
individual net worth, or his or her spouse and he or she have a joint net
worth, in excess of $1,000,000; or

If the Purchaser is a trust it
has total assets in excess of $5,000,000, was not formed for the specific
purpose of acquiring the Shares, and the purchase of the Shares has been directed
by a “sophisticated person” as defined in Rule 506(b)(2)(ii) of Regulation D,
that is, a person who has such knowledge and experience in financial and
business matters that he is capable of evaluating the merits and risks of an
investment in the Shares; or

If the Purchaser is a partnership
(i) it was not formed for the specific purpose of acquiring the Shares and has
total assets in excess of $5,000,000, or (ii) all of its equity owners
individually qualify as accredited investors; or

If the Purchaser is a limited
liability company or other legal entity (i) it was not formed for the specific
purpose of acquiring the Shares and total assets in excess of $5,000,000, or
(ii) all of its equity owners individually qualify as accredited investors; or

The Purchaser is an investment
company registered under the Investment Company Act of 1940; or

The Purchaser is a Small Business
Investment Company licensed by the U.S. Small Business Administration under
section 301(c) or (d) of the Small Business Investment Act of 1958.

Purchase and Sale of the
Shares.  Subject to the terms and
conditions of this Purchase Agreement, the Company agrees to issue and sell to
each Purchaser and each Purchaser agrees to purchase from the Company, at the
Closing, such number of Shares as is stated on the respective signature page of
this Agreement, free and clear of all restrictive and other legends (except as
expressly provided herein), at a purchase price of $4.90 per share and upon
such terms and conditions as set forth herein and in the Summary of Terms
attached hereto as Exhibit B.  A
summary of the Purchasers and the number of Shares each Purchaser shall
purchase is set forth on Exhibit C.

The
Closing, with respect to the first group of Purchasers hereunder comprising a
minimum aggregate purchase price of at least $25,000,000, shall be held at
10:00 a.m. at the offices of Rice Voelker on April 18, 2006, or such later date
as agreed to between Rice Voelker and the Company (as applicable, the “Initial
Closing Date”).  At each Closing, the
Company will execute and deliver to each Purchaser under such Closing, unless
otherwise requested by such Purchaser, a single stock certificate, registered
in the name and for the number of Shares set forth on the last page of this
Agreement, dated the date of such Closing, against payment of the purchase
price by wire transfer of immediately available funds, delivery of certified or
bank cashier’s check or payment of other immediately available funds acceptable
to the Company.

 

 

Notwithstanding
anything to the contrary set forth herein, the obligations of the Company to
issue the Shares and the obligations of the Purchasers to purchase Shares
described herein shall be conditioned upon the Company’s receipt of an
aggregate purchase price for the Shares hereunder in an amount not less than
$25,000,000.  In the event that the
aggregate purchase price to be paid for the Shares is less than $50,000,000,
the Company may conduct one or more additional Closings upon the terms and
conditions set forth herein until such time as the aggregate purchase price to
be paid for all Shares issued hereunder equals $50,000,000 (each such Closing,
as applicable, a “Subsequent Closing”); provided, however, that each Subsequent
Closing must occur, if at all, within forty-five (45) days following the
Initial Closing Date.  The date for any
Subsequent Closing, if applicable, shall be the date agreed upon by the Company
and each subsequent Purchaser executing this Purchase Agreement by Joinder
hereto in form reasonably acceptable to the Company.

Conditions to each Purchaser’s
Obligations.  The
obligation of each Purchaser to purchase and pay for the Shares to be acquired
by it at the Closing shall be subject to the compliance by the Company with its
agreements herein contained, and to the satisfaction at or before such Closing
of the following further conditions:

Sale of Shares.  The Company will issue and sell the Shares at
the time and in the manner provided and receive payment therefor in the amounts
and for the consideration specified in Section 4.

Accuracy of Representations and Warranties.  The representations and warranties contained
in Section 2 of this Purchase Agreement shall be true and correct on and
as of the date of the Closing with the same force and effect as though made on
and as of the date of such Closing; no event which, if the Shares had been
outstanding, from the passage of time or giving of notice, or both, would
become such an event of default shall have occurred and be continuing on the
date of the Closing; between the date hereof and the Closing, neither the
business nor assets nor the condition, financial or otherwise, of the Company
and its Subsidiaries on a consolidated basis shall have been adversely affected
in any material manner as the result of any fire, explosion, accident, drought,
strike, lockout, riot, sabotage, confiscation, condemnation or purchase of any
property by governmental authority, activities of armed forces or acts of God
or the public enemy, or other event or development.

Proper Proceedings.  All proper corporate proceedings shall have
been taken by the Company to authorize this Purchase Agreement and the
transactions contemplated hereby.

Delivery of Other Documents.  Each Purchaser shall have received the
following:

Good Standing Certificate.  A long form certificate of
good standing dated within thirty (30) days of the Closing Date of the
Secretary of State of the State of Delaware as to the existence and good
standing of the Company and listing the charter documents of the Company on
file in his office, and copies, certified by said Secretary of State, of all
such charter documents;

Officers’ Certificate.  A certificate of the Secretary
of the Company, in form and substance satisfactory to Purchaser, certifying

a copy of the By-laws of the
Company, and

 

 

resolutions of the Board of
Directors of the Company relating to this Purchase Agreement and the issuance
of the Shares.

Opinion of Counsel.  An opinion of counsel for the
Company on such matters as Rice Voelker shall reasonably request.

Certificates for Shares.  Certificate of the Transfer
Agent that the Shares have been issued.

General.  All instruments and legal proceedings in
connection with the transactions contemplated by this Purchase Agreement shall
be satisfactory in form and substance to each Purchaser, and each Purchaser
shall have received copies of all documents, including records of corporate
proceedings, which it may have requested in connection therewith, such
documents where appropriate to be certified by proper corporate or governmental
authorities.

The Shares and Use of Proceeds.

The Shares.  Each certificate representing Shares shall be
executed by or bear the facsimile signature of the President, any
Vice-President or its Treasurer and its Secretary, and shall be dated its date
of issue.

Use of Proceeds.  The proceeds of the Shares, together with the
proceeds of all other sales of Common Stock being offered in this same
offering, shall be used substantially as stated in the 2006 SEC Filings, as
summarized on Exhibit B.

Registration Rights.

Mandatory Registration.  The Company shall prepare and file with the
Commission a registration statement (the “Registration Statement”) on an
appropriate form covering the resale of the Registrable Securities by the
Purchasers on or prior to the 30th day after the Initial Closing Date.  Such Registration Statement also shall cover,
to the extent allowable under the Securities Act and the rules promulgated
thereunder (including Rule 416), such indeterminate number of additional shares
of Common Stock resulting from stock splits, stock dividends or similar
transactions with respect to the Registrable Securities.

Expenses of Registration.  All Registration Expenses incurred in
connection with the registration shall be borne by the Company.  Unless otherwise stated, all Selling Expenses
relating to securities registered on behalf of each Purchaser shall be borne by
each Purchaser of such securities pro rata on the basis of the number of shares
so registered except the legal fees and disbursements of any counsel for any
Holder not required to be paid by the Company which shall be borne by such
Holder.

Registration Procedures.  At its expense the Company will:

Prepare and file with the
Commission the Registration Statement and use its commercially reasonable
efforts to cause such Registration Statement to become effective as soon as
possible after the filing thereof, and keep the Registration Statement
effective pursuant to Rule 415 at all times, subject to Section 7.4, until such
date as is the earlier of (i) the date on which all Registrable Securities have
been sold by each Holder, and (ii) the date on which the Registration Rights
terminate as set forth in Section 7.9;

 

 

Prepare and file with the
Commission such amendments and post-effective amendments to the Registration
Statement and the prospectus contained therein as may be necessary to keep the
Registration Statement effective for the period required hereunder and to
comply with the provisions of the Securities Act and the Exchange Act with
respect to the distribution of all of the Registrable Securities covered
thereby;

Provide copies to and permit such
counsel as is designated by a Purchaser, to review each Registration Statement
and all amendments and supplements thereto no fewer than three (3) Business
Days prior to their filing with the Commission and not file any document to
which such counsel reasonably objects;

Furnish to the Purchasers and
their respective legal counsel (i) promptly after the same is prepared and
publicly distributed, filed with the Commission, or received by the Company
(but not later than two (2) Business Days after the filing date, receipt date
or sending date, as the case may be) one (1) copy of any Registration Statement
and any amendment thereto, each preliminary prospectus and prospectus as
contained therein and each amendment or supplement thereto, and each letter
written by or on behalf of the Company to the Commission or the staff of the
Commission, and each item of correspondence from the Commission or the staff of
the Commission, in each case relating to such Registration Statement (other
than any portion of any thereof which contains information for which the
Company has sought confidential treatment), and (ii) such number of copies of a
prospectus as contained in such Registration Statement, including a preliminary
prospectus, and all amendments and supplements thereto and such other documents
as each Purchaser may reasonably request in order to facilitate the disposition
of the Registrable Securities owned by such Purchaser that are covered by the
related Registration Statement;

Promptly notify each Holder upon
the declaration of the effectiveness of the Registration Statement and promptly
furnish to the Purchasers participating in such registration and to the
underwriters (if any) of the securities being registered such reasonable number
of copies of the registration statement, preliminary prospectus (and all
required amendments and supplements to any thereof), final prospectus and such
other documents as such Purchasers or such underwriters may reasonably request
in order to facilitate the public offering of such securities, and in
furtherance thereof, by 9:30 am on the first business day following the
effective date of the Registration Statement, the Company shall file with the
Commission in accordance with Rule 424 under the Securities Act the final
prospectus to be used in connection with sales pursuant to the
Registration Statement;

Use its commercially reasonable
efforts to register or qualify such Registrable Securities under such other
applicable state securities or blue sky laws of such states as any Holder of
Registrable Securities covered by such Registration Statement reasonably
requests as may be necessary for the marketability of the Registrable
Securities and do any and all other acts and things which may be reasonably
necessary or advisable to enable such Holder to consummate the disposition in
such jurisdictions of the Registrable Securities owned by such Holder;

Use its commercially reasonable
efforts to cause all the Registrable Securities covered by the Registration
Statement to be quoted on such principal securities market on which securities
of the same class issued by the Company are then listed or traded; and

 

 

Use commercially reasonable
efforts to (i) prevent the issuance of any stop order or other suspension of
effectiveness and, (ii) if such order is issued, obtain the withdrawal of any
such order at the earliest possible moment.

Suspension of Registration.  The Company shall promptly notify the
Purchasers of (i) the issuance by the Commission of a stop order suspending the
effectiveness of the Registration Statement, (ii) the happening of any event,
of which the Company has knowledge, as a result of which the prospectus included
in the Registration Statement, as then in effect, includes an untrue statement
of a material fact or omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, and (iii)
the occurrence or existence of any pending corporate development that, in the
reasonable discretion of the Company, makes it appropriate to suspend the
availability of the Registration Statement to comply with Commission
rules.  In each case the Company shall
use commercially reasonable efforts to promptly prepare a supplement or
amendment to the Registration Statement to correct such untrue statement or
omission, and deliver such number of copies of such supplement or amendment to
each Holder as such Holder may reasonably request; provided that, the Company
may delay to the extent permitted by law the disclosure of material non-public
information concerning the Company the disclosure of which at the time is not,
in the good faith opinion of the Company, in the best interests of the Company
(an “Allowed Delay”); provided, further, that an Allowed Delay shall not exceed
30 consecutive days in any 365-day period, and there shall be no more than two
such Allowed Delay periods.  The Company
shall promptly notify the Purchasers in writing of the existence of an Allowed
Delay and shall advise the Purchasers in writing to cease all sales under the
Registration Statement until the end of the Allowed Delay.

Failure
of Registration Statement to Become Effective on a Timely Basis.

Notwithstanding anything to the
contrary set forth herein, in the event that the Registration Statement is not
effective within ninety (90) days from the Initial Closing Date (or one hundred
and twenty (120) days in the event of a review of the Registration Statement by
the Commission), the Company shall pay each Purchaser in cash as liquidated
damages and not as a penalty an amount equal to one percent (1%) of the
aggregate purchase price paid by each Purchaser within five (5) days of the
expiration of such ninety (90) or one hundred and twenty (120) day period, as
the case may be, and an additional one percent (1%) thereof upon the expiration
of each subsequent thirty (30) day period or pro rata for any portion thereof
until the Registration Statement is effective.

In addition, in the event that after a Registration Statement has been declared effective by the
Commission, sales cannot be made pursuant to such Registration Statement for
any reason (including without limitation by reason of a stop order, or the Company’s
failure to update the Registration Statement), but excluding as a result of an
Allowed Delay, the Company will make pro rata payments to each Purchaser, as
liquidated damages and not as a penalty, in an amount equal to one percent (1%)
of the aggregate purchase price paid by each Purchaser for each 30-day period
or pro rata for any portion thereof following the date by which such
Registration Statement should have been effective (the “Blackout Period”).  The amounts payable as liquidated damages pursuant
to this paragraph shall be paid monthly within three (3) Business Days of the
last day of each month following the commencement of the Blackout Period until
the termination of the Blackout Period. 
Such payments shall be made to each Purchaser in cash.

 

 

Indemnification.

The Company will indemnify and
hold harmless each Holder and Rice Voelker, each of their respective officers
and directors, trustees, members, employees and partners, and each Person
controlling such Holder within the meaning of Section 15 of the Securities Act,
with respect to which registration has been effected pursuant to this Section 7
and each underwriter, if any, and each Person who controls any underwriter
within the meaning of Section 15 of the Securities Act, against all expenses,
claims, losses, damages or liabilities (or actions in respect thereof),
including any of the foregoing incurred in settlement of any litigation,
commenced or threatened, arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in any registration
statement, prospectus, offering circular or other document, or any amendment or
supplement thereto, incident to any such registration, qualification or
compliance, or based on any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances in which they were made, not misleading,
or any violation by the Company of the Securities Act, the Exchange Act, state
securities law or any rule or regulation promulgated under such laws applicable
to the Company in connection with any the registration, and within a reasonable
period the Company will reimburse each such Holder and Rice Voelker, each of
their respective officers and directors, trustees, members, employees and
partners, and each Person controlling such Holder within the meaning of Section
15 of the Securities Act, each such underwriter and each Person who controls
any such underwriter, for any legal and any other expenses reasonably incurred
in connection with investigating, preparing, defending or paying any such
claim, loss, damage, liability or action; provided that the Company will not be
liable in any such case to the extent that any such claim, loss, damage,
liability or expense arises out of or is based on any untrue statement or
omission or alleged untrue statement or omission, made in reliance upon and in
conformity with written information furnished to the Company by an instrument
duly executed by such Holder, controlling Person or underwriter and stated to
be specifically for use therein.

Each Holder will, if Registrable
Securities held by such Holder are included in the Registration Statement,
indemnify the Company, each of its directors and officers, each underwriter, if
any, of the Company’s securities covered by the Registration Statement, each
Person who controls the Company or such underwriter within the meaning of
Section 15 of the Securities Act, Rice Voelker and each other such Holder each
of their respective officers and directors, trustees, members, employees and
partners, and each Person controlling such Holder within the meaning of Section
15 of the Securities Act, against all claims, losses, damages and liabilities
(or actions in respect thereof) arising out of or based on any untrue statement
(or alleged untrue statement) of a material fact contained in the Registration
Statement, prospectus, offering, circular or other document, or any omission
(or alleged omission) to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and within
a reasonable period will reimburse the Company, Rice Voelker, such Purchasers,
each of their respective officers and directors, trustees, employees and
partners, and each Person controlling such Holder within the meaning of Section
15 of the Securities Act, for any legal or any other expenses reasonably
incurred in connection with investigating or defending any such claim, loss,
damage, liability or action, in each case to the extent, but only to the
extent, that such untrue statement (or alleged untrue statement) or omission
(or alleged omission) is made in the Registration Statement, prospectus,
offering circular or other document in reliance upon and in conformity with
written information furnished to the Company by an instrument duly 

 

 

executed by such Holder and stated to be specifically for
use therein.  Notwithstanding the
foregoing, the liability of each Holder under this subsection (b) shall be
limited in an amount equal to the gross proceeds before expenses and
commissions to such Holder received for the shares sold by such Holder.

Each party entitled to
indemnification under this Section 7.6 (the “Indemnified Party”) shall give notice
to the party required to provide indemnification (the “Indemnifying Party”)
promptly after such Indemnified Party has actual knowledge of any claim as to
which indemnity may be sought, and shall permit the Indemnifying Party to
assume the defense of any such claim or any litigation resulting therefrom,
provided that counsel for the Indemnifying Party, who shall conduct the defense
of any such claim or any litigation, shall be approved by the Indemnified Party
(whose approval shall not unreasonably be withheld or delayed), and the
Indemnified Party may participate in such defense at such Indemnified Party’s
expense, and provided further that the failure of any Indemnified Party to give
notice as provided herein shall not relieve the Indemnifying Party of its
obligations under this Section 7 unless the failure to give such notice is
materially prejudicial to an Indemnifying Party’s ability to defend such action
and provided further, that the Indemnifying Party shall not assume the defense
for matters as to which there is a conflict of interest or separate and
different defenses.  No Indemnifying
Party, in the defense of any such claim or litigation, shall, except with the
consent of each Indemnified Party, consent to entry of any judgment or enter
into any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such Indemnified Party of a release from
all liability in respect to such claim or litigation.

Information by Holder.  The Holder of Registrable Securities included
in the registration shall furnish to the Company such information regarding
such Holder, the Registrable Securities held by them and the distribution
proposed by such Holder as the Company may request in writing and as shall be
required in connection with the registration referred to in this Section 7.

Rule 144 Reporting.  With a view to making available the benefits
of certain rules and regulations of the Commission that may at any time permit
the sale of the Registrable Securities to the public without registration, the
Company agrees to use its commercially reasonable efforts to:

Make and keep public information
available, as those terms are understood and defined in Rule 144 under the
Securities Act, at all times;

File with the Commission in a
timely manner all reports and other documents required of the Company under the
Securities Act and the Exchange Act (including, without limitation, the filing
of a Current Report on Form 8-K describing the terms of the transactions
contemplated by the Purchase Agreement in the form and within the time frame
required by the Exchange Act and attaching this Purchase Agreement and any
other material transaction documents relating thereto).  From and after the filing with the Commission
of the 8-K in accordance with the preceding sentence, the Company shall have
disclosed any material nonpublic information delivered to the Purchasers by the
Company or any of its Subsidiaries, or any of their respective officers,
directors, employees or agents;

Maintain the Common Stock’s
authorization for quotation on the over-the-counter bulletin board offered by
the National Association of Security Dealers; and

 

 

So long as a Holder owns any
Registrable Securities, furnish to the Holder forthwith upon request a written
statement by the Company as to its compliance with the reporting requirements
of said Rule 144, and of the Securities Act and the Exchange Act, a copy of the
most recent annual or quarterly report of the Company, and such other reports
and documents of the Company and other information in the possession of or
reasonably obtainable by the Company as the Holder may reasonably request in
availing itself of any rule or regulation of the Commission allowing the Holder
to sell any such securities without registration.

Reports.  The Company will furnish to the Purchasers
and/or their assignees such information relating to the Company and its
Subsidiaries as from time to time may reasonably be requested by the Purchasers
and/or their assignees; provided, however, that the Company shall
not disclose material nonpublic information to the Purchasers, or to advisors
to or representatives of the Purchasers, unless prior to disclosure of such
information the Company identifies such information as being material nonpublic
information and provides the Purchasers, such advisors and representatives with
the opportunity to accept or refuse to accept such material nonpublic
information for review and any Purchaser wishing to obtain such information
enters into an appropriate confidentiality agreement with the Company with
respect thereto.

Termination of Registration Rights.  The registration rights granted pursuant to
Section 7 shall terminate as to each Holder on the earlier of (i) two years
after the effective date of the Registration Statement, (ii) the date on which
all Registrable Securities held by such Holder may be resold without
registration or without regard to any volume limitations by reason of Rule
144(k) under the Securities Act or any other rule of similar effect or (iii)
all of the Registrable Securities held by such Holder have been sold pursuant
to the Registration Statement or Rule 144(k) under the Securities Act or any
other rule of similar effect.

Removal of Legends.  Upon the earlier of (i) registration for resale
pursuant to the registration rights contained in Section 7 hereof or (ii) Rule
144(k) becoming available the Company shall (A) deliver to the transfer agent
for the common stock (the “Common Stock”) of the Company (the “Transfer Agent”)
irrevocable instructions that the Transfer Agent shall reissue a certificate
representing shares of Common Stock without legends upon receipt by such
Transfer Agent of the legended certificates for such shares, together with
either (1) a customary representation by the Purchaser that Rule 144(k) applies
to the shares of Common Stock represented thereby or (2) a statement by the
Purchaser that such Purchaser has sold the shares of Common Stock represented
thereby in accordance with the Plan of Distribution contained in the
Registration Statement and, if applicable, in accordance with any prospectus
delivery requirements, and (B) cause its counsel to deliver to the Transfer
Agent one or more blanket opinions to the effect that the removal of such
legends in such circumstances may be effected under the Securities Act.  From and after the earlier of such dates,
upon a Purchaser’s written request, the Company shall promptly, and in any
event by the third trading day following the Share Delivery Date (as defined
below), cause certificates evidencing the Purchaser’s Shares to be replaced
with certificates which do not bear such restrictive legends.  If a Purchaser shall make a sale or transfer
of Shares either (x) pursuant to Rule 144 or (y) pursuant to a Registration
Statement and in each case shall have delivered to the Transfer Agent the
certificate representing Shares containing a restrictive legend which are the
subject of such sale or transfer and a representation letter in customary form
(the date of such sale or transfer and Share delivery being the “Share Delivery
Date”) and (1) the Company shall fail to deliver or cause to be delivered to
such Purchaser a certificate representing such Shares that is free from all
restrictive or other legends by the third trading day following the Share
Delivery Date and (2) following such third trading day after the Share Delivery
Date and prior to the time such Shares are received free from 

 

 

restrictive legends, the
Purchaser, or any third party on behalf of such Purchaser or for the Purchaser’s
account, purchases (in an open market transaction or otherwise) shares of
Common Stock to deliver in satisfaction of a sale by the Purchaser of such
Shares (a “Buy-In”), then the Company shall pay in cash to the Purchaser (for
costs incurred either directly by such Purchaser or on behalf of a third party)
the amount by which the total purchase price paid for Common Stock as a result
of the Buy-In (including brokerage commissions, if any) exceeds the proceeds
received by such Purchaser as a result of the sale to which such Buy-In
relates.  The Purchaser shall provide the
Company written notice indicating the amounts payable to the Purchaser in
respect of the Buy-In.

Survival of Covenants.  All covenants, agreements, representations
and warranties made herein and in certificates delivered pursuant hereto shall
be deemed to have been material and relied on by the Parties hereto,
notwithstanding any investigation made by any Purchaser or on its behalf, and
shall survive the execution and delivery to the Purchasers of the Shares and
the payment therefor.

Addresses.  Any notice or demand which by any provisions
of this Purchase Agreement is required or provided to be given shall be deemed
to have been sufficiently given or served for all purposes by being sent as
registered or certified mail, postage and registration charges prepaid, to the
following addresses:  if to the Company,
Uranium Resources, Inc., 650 South Edmonds, Suite 108, Lewisville, TX  75067, or, if any other address shall at any
time be designated by the Company in writing to the Purchasers, to such other
address; and if to a Purchaser, to the address stated on the applicable
signature page of this Agreement or, if any other address shall at any time be
designated by such Purchaser in writing to the Company, to such address.

Dates; Captions.  For convenience of reference, this Purchase
Agreement shall be dated as of the date first above written, regardless of the
date upon which a Purchaser shall have signed the acceptance hereof.  Captions and headings are for the convenience
of reference only and shall not be deemed part of this Purchase Agreement or
used in its construction.

Benefits.  All of the terms and provisions of this
Purchase Agreement shall bind and inure to the benefit of the parties hereto
and their respective successors and assigns, provided that the obligations of
each Purchaser under this Purchase Agreement may not be assigned without the
prior written consent of the Company.

Whole Agreement; Controlling
Law; Exhibits and Schedules.  This Purchase Agreement, which constitutes
the entire agreement between the parties with respect to the subject matter
hereof (replacing any other agreements written and oral, excluding the
Confidentiality Agreements among the Company, Rice Voelker and each Purchaser
dated on or about March 31, 2006), shall be governed by and construed in
accordance with the laws of the state of New York, as applied to agreements
made and to be performed entirely within the state of New York.  The parties also consent to the non-exclusive
jurisdiction of the federal and state courts located in New York, New York for
the resolution of any matters arising under or with respect to this agreement
and the transactions contemplated hereby. 
Exhibits and schedules attached hereto shall be deemed incorporated by
reference herein as fully as if set forth herein in full.

Additional Documents.  Each Purchaser who is a resident of, or whose
principal place of business is in, certain states may be required to deliver
additional documents in respect of compliance with state securities laws.  If requested by the Company, each such
Purchaser shall promptly provide such documents as the Company may reasonably
request.

 

 

Counterparts; Signatures.  This Purchase Agreement may be executed in
any number of counterparts, each of which, when executed and delivered, shall
be an original, but such counterparts shall together constitute one and the
same instrument.  Signatures may be
delivered by facsimile.

IN WITNESS WHEREOF, this
Stock Purchase Agreement was duly executed on the date first written above.

	
   

  	
  COMPANY:  

  
	
   

  	
   

  	
   

  
	
   

  	
  URANIUM RESOURCES, INC. 

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Paul K. Willmott,
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  PURCHASERS: 

  
	
   

  	
   

  	
   

  
	
   

  	
  See attached signature pages

  

 

 

EXHIBIT B

 

URANIUM
RESOURCES, INC.

 

SUMMARY
OF TERMS

 

OF
MINIMUM $25,000,000 AND MAXIMUM $50,000,000 PRIVATE PLACEMENT

 

APRIL
2006

 

Uranium Resources, Inc.
(the “Company”) is offering, in a private offering under Rule 506 of Regulation
D under the Securities Act of 1933, as amended (the “Securities Act”), a
minimum of 5,102,040 shares and a maximum of 10,204,081 shares of Common Stock,
$.001 par value per share (“Common Stock”), at a purchase price of $4.90 per
share.  Upon the sale of such shares, the
Company will raise gross proceeds of a minimum of $25,000,000 and a maximum of
$50,000,000.

 

The 2006 SEC Filings
attached to the Purchase Agreement as Exhibit A are incorporated herein
by reference.

 

TERMS
OF OFFERING

 

                The
following is a summary of the terms of the offering, as more particularly
described in the Purchase Agreement:

 

	
  NAME
  OF ISSUER

  	
   

  	
  Uranium
  Resources, Inc., a Delaware corporation (the “Company”)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECURITIES OFFERED

  	
   

  	
  Shares
  of Common Stock

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRICE PER SHARE

  	
   

  	
  $4.90

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REVERSE STOCK SPLIT

  	
   

  	
  The
  shares of Common Stock are being offered post-effectiveness of the Company’s
  one-for-four reverse stock split effected April 10, 2006, as more
  particularly described in the Company’s Form 8-K filed with the Commission on
  April 11, 2006.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AGGREGATE PRICE FOR SHARES

  	
   

  	
  A
  minimum of $25,000,000 and a maximum of $50,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CLOSING

  	
   

  	
  April
  18, 2006, or such later date as agreed upon by Rice Voelker and the Company;
  provided, however, that one or more subsequent closings may occur in the
  event that the Company receives less than the minimum purchase price set
  forth above until the Company receives at least the maximum purchase price
  set forth above.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  USE OF PROCEEDS

  	
   

  	
  The
  proceeds of this offering will be used for the following purposes (assuming
  the minimum amount is raised):

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  •

  	
  $12
  million payment to UG USA Inc. in respect of the Company’s restructured
  supply contract dated as of March 31, 2006; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  •

  	
  $13
  million for capital costs for upgrades to the Rosita plant, permitting and
  development drilling for Rosita, delineation drilling for properties
  contiguous to the Rosita plant, land acquisition and exploration costs and
  working capital.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In
  the event the Company raises the maximum amount, the additional $25 million
  shall be used for the following purposes:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  •

  	
  exploration,
  development and permitting in South Texas 

  

 

B-1

 

	
   

  	
   

  	
   

  	
   

  	
  and
  further development of our South Texas and New Mexico properties.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AUTHORIZED SHARES

  	
   

  	
  The
  Company has 200 million authorized shares of Common Stock.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SHARES OUTSTANDING BEFORE THIS OFFERING

  	
   

  	
  As
  of April 11, 2006, there were 41,056,023 shares of Common Stock outstanding,
  excluding 6,896,729 shares that are reserved for issuance pursuant to the
  Company’s option plans.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SHARES OUTSTANDING AFTER THE OFFERING

  	
   

  	
  A
  minimum of 46,158,063 shares and a maximum of 51,260,104 shares, assuming a
  minimum of 5,102,040 shares and a maximum of 10,204,081 shares are issued in
  this offering. This excludes 6,896,729 shares that are reserved for issuance
  pursuant to the Company’s option plans.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MINIMUM OFFERING

  	
   

  	
  $25
  million

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MAXIMUM OFFERING

  	
   

  	
  $50
  million

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MINIMUM SUBSCRIPTION PER INVESTOR

  	
   

  	
  None

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELIGIBILITY

  	
   

  	
  Accredited
  Investors Only

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PAYMENT OF SUBSCRIPTION PRICE

  	
   

  	
  Payments
  of the Subscription Amount may be made by wire transfer using the following
  instructions:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Bank
  of America — Dallas

  1201 Main Street

  Dallas, Texas 75202

  ABA # 111000025

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  For
  further credit to:

  Uranium Resources, Inc.

  Acct. # 0058 6235 3343

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Payment
  may also be made by certified or bank cashier’s check tendered to the
  Company, at the following address:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Thomas
  H. Ehrlich

  Chief Financial Officer

  Uranium Resources, Inc.

  650 South Edmonds, Suite 108

  Lewisville, Texas 75067

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRANSFER RESTRICTIONS

  	
   

  	
  The
  shares have not been registered for sale under the Securities Act or under
  state securities laws in reliance upon exemptions therefrom. The shares are
  to be purchased solely for the Purchaser’s investment purposes and not for
  the account of any other person and not for distribution, assignment or
  resale to others. No person other than the Purchaser may have a direct or
  indirect beneficial interest in such shares. Purchasers must agree not to
  sell or otherwise transfer their Common Stock, warrants or Common Stock
  issuable pursuant to the warrants unless they are registered under the
  Securities Act and under any applicable state securities laws, or an
  exemption or exemptions from such registration are available.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RESALE REGISTRATION STATEMENT

  	
   

  	
  The
  Company will file with the SEC a registration statement within thirty (30)
  days of the date of the initial closing date of this offering 

  

 

B-2

 

	
   

  	
   

  	
  and
  keep such registration statement effective until such date as is the earlier
  of (i) the date on which all such shares covered by the registration
  statement are sold or (ii) the date on which such shares may be resold
  without a registration and without regard to any volume limitations by reason
  of Rule 144(k) under the Securities Act, to register the resale under the
  Securities Act and any applicable state securities law of the Common Stock
  issued pursuant to this offering. In the event that the Company does not
  effect such registration with ninety (90) days of the initial closing date
  (or one hundred and twenty (120) days in the event of a review of the
  Registration Statement by the Commission), the Company shall pay each
  Purchaser certain amounts as a penalty therefor as set forth in Section 7.5
  of the Purchase Agreement.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PLAN OF DISTRIBUTION/PLACEMENT AGENT

  	
   

  	
  Rice,
  Voelker, L.L.C., of New Orleans, Louisiana, will act as Placement Agent for
  the shares. Rice, Voelker is a registered Broker Dealer under the Securities
  Exchange Act of 1934 and is located at 400 Poydras Street, Suite 2140, New
  Orleans, Louisiana 70130 (telephone number 504-207-5901). Rice, Voelker will
  receive a fee of six percent of the gross proceeds of this offering, with one
  half of such amount payable in cash and one half of such amount payable in
  shares of the Company’s Common Stock (valued at the purchase price of the
  offering).

  

 

 

RISK
FACTORS

 

This offering involves
significant risks.  See “CAUTIONARY
STATEMENTS” in the accompanying Form 10-KSB for 2005 filed with the Securities
and Exchange Commission on March 31, 2006, and related disclosures described in
the remaining 2006 SEC Filings.

 

 

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