Document:

Exhibit 10.3

 

HAMILTON
PARK TOWERS, LLC

 

LIMITED
LIABILITY COMPANY AGREEMENT

 

This Limited Liability Company
Agreement (the “Agreement”) of Hamilton Park Towers, LLC, a Delaware limited
liability company (as amended from time to time, the “LLC”) is entered into as
of the           day of October,
2009, by (a) its sole member, HPT Associates, LLC, a Delaware limited
liability company, (b) its managers, Harold Brown and NewReal, Inc.,
a Massachusetts corporation and (c) those individuals and/or entities
listed on Schedule A as “Independent Manager” and “Special Member”.

 

WHEREAS, the LLC has been
formed as a limited liability company under the Delaware Limited Liability
Company Act, 6 Del. C. § 18-01 et seq. (as
amended from time to time,  the “Act”) by the filing on the
date hereof of a Certificate of Formation (the “Certificate”) with the office
of the Secretary of State of the State of Delaware; and

 

WHEREAS, the parties hereto
wish to set out fully their respective rights, obligations and duties with
respect to the LLC and its business, management and operations.

 

NOW, THEREFORE, in
consideration of the mutual agreements contained herein, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:

 

1.             Name.  The name of the limited liability company
shall be “Hamilton Park Towers, LLC”. 
Sally E. Michael is hereby designated as an “authorized person” within
the meaning of the Act, and has executed, delivered and filed the Certificate
of Formation of the LLC with the Secretary of State of the Sate of
Delaware.  Upon the filing of the
Certificate of Formation with the Secretary of State of the State of Delaware,
her powers as an “authorized person” ceased, and the Member thereupon became
the designated “authorized person” and shall continue as designated “authorized
person” within the meaning of the Act. 
The Member or an Officer shall execute, deliver and file any other
certificates (and any amendments and/or restatements thereof) necessary for the
LLC to qualify to do business in any other jurisdiction in which the LLC may
wish to conduct business.  The existence
of the LLC as a separate legal entity shall continue until cancellation of the
Certificate of Formation as provided in the Act.

 

2.             Purpose.  The sole purpose of the LLC is to acquire,
own, hold, maintain, and operate that property located at 175 Freeman Street,
Brookline, Massachusetts (the “Property”), together with such other activities
as may be necessary or advisable in connection with the ownership of the
Property.  The LLC shall not engage in
any business, and it shall have no purpose, unrelated to the Property and shall
not acquire any real property or own assets other than those related to the
Property and/or otherwise in furtherance of the limited purposes of the LLC.

 

3.             LLC
Address.  The address of the
principal office of the LLC is c/o The Hamilton Company, Inc., 39 Brighton
Avenue, Boston, Massachusetts 02134.

 

4.             Registered
Office and Registered Agent.  The
registered office of the LLC in the State

 

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of Delaware is
c/o National Registered Agents, Inc., 160 Greentree Drive, Suite 101,
Dover, DE 19904.  The name of the
registered agent of the LLC at such address is National Registered Agents, Inc.

 

5.             Member.  The Member was admitted to the LLC as member
of the LLC upon its execution of counterpart signature page to this
Agreement.  The name and address of the
sole Member of the LLC is as follows:

 

HPT Associates, LLC

c/o The Hamilton Company, Inc.

39 Brighton Avenue

Boston, Massachusetts 02134

 

6.             Powers.  Subject to the terms of Section 19
below, the LLC shall have the power and authority to do any and all acts
necessary or convenient to or in furtherance of the purposes described in Article 2
hereof, including all power and authority, statutory or otherwise, possessed
by, or which may be conferred upon, limited liability companies under the Act
and under the laws of the State of Delaware.

 

7.             Management.

 

7.01         Designation of Managers.  Harold Brown and NewReal, Inc. are the
managers of the LLC.  In the event of the
withdrawal of either Manager, another person or entity (who may but need not be
the Member) may be added or substituted as the Manager by the Member.

 

7.02         Management of the LLC.  Subject to the provisions of this Agreement,
the overall management and control of the business and affairs of the LLC shall
be vested in the Managers.  Any Manager
may delegate his, her or its authority to another Manager as to any particular
matter, or as to all matters for a specified period of time by a writing duly
executed by such delegating Manager.

 

7.03         Limitation on Powers. 
Anything in this Agreement to the contrary notwithstanding, a Managers
shall not, without the consent of all of the other Managers, if applicable,
cause or permit the LLC to:

 

(a)           make any loans to a Manager or its Affiliates;

 

(b)                                 sell,
encumber or otherwise dispose of all or substantially all of the properties of
the LLC (a sale or disposition will be deemed to be “all or substantially all
of the properties of the LLC” if the sale or disposition includes the Property
or if the total value of the properties sold or disposed of in such transaction
and during the twelve months preceding such transaction is 66-2/3% or more in
value of the LLC’s total assets as of the end of the most recently completed
LLC fiscal year);

 

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(c)           to the fullest extent permitted by law, dissolve, wind-up,
or liquidate the LLC;

 

(d)                                 merge,
consolidate or acquire substantially all the assets of another person or
entity; or

 

(e)           change the nature of the business conducted by the LLC.

 

7.04         Binding the LLC. The signature of a Manager on any
agreement, contract, instrument or other document shall be sufficient to bind
the LLC in respect thereof, and conclusively evidence the authority of such
Manager and the LLC with respect thereto, and no third party need look to any
other evidence or require the joinder or consent of any other party.  The LLC, and the Member, or any Manager on
behalf of the LLC, may enter into and perform the Loan Documents and all
documents, agreements, certificates, or financing statements contemplated
thereby or related thereto, all without any further act, vote or approval of
any Member, Manager or other Person notwithstanding any other provision of this
Agreement, the Act or applicable law, rule or regulation.  The foregoing authorization shall not be
deemed a restriction on the powers of the Member or any Manager to enter into
other agreements on behalf of the LLC

 

7.05         Compensation of Managers. The LLC may compensate the
Managers for the Managers’ services to the LLC.

 

7.06         Contracts with Members. Subject to the terms of Section 19
below, the LLC may engage in business with, or enter into one or more
agreements, leases, contracts or other arrangements for the furnishing to or by
the LLC of goods, services or space with the Member or an affiliate of a
Member, and may pay compensation in connection with such business, goods,
services or space, provided in each case the amounts payable thereunder are
reasonably comparable to those that would be payable to unaffiliated persons
under similar agreements, and, if the Manager determines in good faith that
such amounts are so comparable, such determination shall be conclusive absent
manifest error.

 

7.07         Exculpation and Indemnification; Fiduciary Duty.

 

(a)                                  Neither
the Member nor the Managers, nor any of their respective affiliates, shall have
any liability to the LLC or to each other for any loss suffered by the LLC that
arises out of any action or inaction of the Member, the Managers or their
affiliates, if such course of conduct did not constitute the willful misconduct
of the Member, the Managers or any such affiliate.

 

(b)                                 To
the fullest extent permitted by law, the Member, the Managers and their
respective Affiliates shall be indemnified by the LLC against any and all
losses, judgments, liabilities, expenses (including attorneys’ fees) and
amounts paid in settlement of any claims sustained by it with respect to any
authorized actions taken by the Member, the Managers or any such affiliate on
behalf of the LLC.   Any indemnification
to be provided hereunder shall be provided even if the person to be indemnified
is no longer a Member, Managers or an affiliate of a Member or Manager.  Any indemnity under this Section 7.07
shall be paid from, and only to the extent of, LLC assets, and

 

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neither the Member nor the Managers
or any of their respective affiliates shall have any personal liability on
account thereof.

 

7.08         Other Activities. 
Notwithstanding any other duty existing at law or in equity, the Member,
the Managers and any of their respective affiliates may engage in and possess
interests in other business ventures and investment opportunities of every kind
and description, independently or with others, including serving as directors,
officers, stockholders, managers, members and general or limited partners of corporations,
partnerships or other LLCs with purposes similar to or the same as those of the
LLC. Neither the LLC nor any other party hereto shall have any rights in or to
such ventures or opportunities or the income or profits therefrom.

 

8.             Reliance
by Third Parties.  Any person or
entity dealing with the LLC may rely upon a certificate signed by the Manager
as to:

 

(a)                                the
persons or entities authorized to execute and deliver any instrument or
document of or on behalf of the LLC, and

 

(b)                               the
persons or entities authorized to take any action or refrain from taking any
action as to any matter whatsoever involving the LLC.

 

9.             Dissolution
and Special Member.

 

9.01         Existence.

 

(a)                                  The LLC shall be
dissolved, and its affairs shall be wound up upon the first to occur of the
following: (i) the termination of the legal existence of the last
remaining member of the LLC or the occurrence of any other event which
terminates the continued membership of the last remaining member of the LLC in
the LLC unless the LLC is continued without dissolution in a manner permitted
by this Agreement or the Act or (ii) the entry of a decree of judicial
dissolution under Section 18-802 of the Act.  Upon the occurrence of any event that causes
the last remaining member of the LLC to cease to be a member of the LLC or that
causes the Member to cease to be a member of the LLC (other than (i) upon
an assignment by the Member of all of its limited liability company interest in
the LLC and the admission of the transferee pursuant to Section 14,
or (ii) the resignation of the Member and the admission of an additional
member of the LLC pursuant to Section 14), to the fullest extent
permitted by law, the personal representative of such member is hereby
authorized to, and shall, within 90 days after the occurrence of the event that
terminated the continued membership of such member in the LLC, agree in writing
(i) to continue the LLC and (ii) to the admission of the personal
representative or its nominee or designee, as the case may be, as a substitute
member of the LLC, effective as of the occurrence of the event that terminated
the continued membership of the last remaining member of the LLC or the Member
in the LLC.

 

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(b)                                 Notwithstanding any other
provision of this Agreement, the Bankruptcy of the Member or a Special Member
shall not cause the Member or Special Member, respectively, to cease to be a
member of the LLC and upon the occurrence of such an event, the LLC shall
continue without dissolution.

 

(c)                                  In
the event of dissolution, the LLC shall conduct only such activities as are
necessary to wind up its affairs (including the sale of the assets of the LLC
in an orderly manner), and the assets of the LLC shall be applied in the
manner, and in the order of priority, set forth in Section 18-804 of the
Act.

 

(d)                                 The
LLC shall terminate when (i) all of the assets of the LLC, after payment
of or due provision for all debts, liabilities and obligations of the LLC shall
have been distributed to the Member in the manner provided for in this
Agreement and (ii) the Certificate of Formation shall have been canceled
in the manner required by the Act.

 

9.02         Intentionally Omitted.

 

9.03         Special Member.  Notwithstanding any provision in this
Agreement to the contrary, upon the occurrence of any event that causes the
Member to cease to be the member of the LLC (other than (i) upon an
assignment by the Member of all of its limited liability company interest in
the LLC and the admission of the transferee pursuant to Section 14,
or (ii) the resignation of the Member and the admission of an additional
member of the LLC pursuant to Section 14), the person identified on
the signature page of this Agreement as an Independent Manager or, if such
person is unable to serve,  Sally E.
Michael, without any action of any person or entity and simultaneously with the
Member’s ceasing to be a member of the LLC, shall automatically be admitted to
the LLC as a Special Member, and shall continue the LLC without dissolution.

 

The Special Member may
not resign from the LLC or transfer its rights as Special Member unless a
successor Special Member has been admitted to the LLC as Special Member by
executing a counterpart to this Agreement; provided, however, the Special
Member shall automatically cease to be a member of the LLC upon the admission
to the LLC of a Substitute Member.  The
Special Member shall be a member of the LLC that has no interest in the
profits, losses and capital of the LLC and has no right to receive any
distributions of LLC assets.  Pursuant to
Section 18-301 of the Act, the Special Member shall not be required to
make any capital contributions to the LLC and shall not receive a limited
liability company interest in the LLC.

 

Except as required by any
mandatory provision of the Act, Special Member, in its capacity as Special
Member, shall not have the right to vote on, approve or otherwise consent to
any action by, or matter relating to, the LLC, including, without limitation,
the merger, consolidation or conversion of the LLC; provided, however, such
prohibition shall not limit the obligations of the Special Member, in its
capacity as Independent Manager, to vote on such matters required by this
Agreement.

 

For purposes of this Agreement,
the Special Member shall be a member of the LLC that becomes a member in
accordance with this Article 9 and shall only have the rights and
duties

 

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expressly set forth in this Agreement. 
In order to implement the admission to the LLC of the Special Member,
the Special Members have executed a counterpart to this Agreement.  Prior to its admission to the LLC as Special
Member, neither Special Member shall be a member of the LLC or have any interest
(economic or otherwise) in the LLC (other than as an Independent Manager).  The person identitified on the signature page as
the Independent Manager is hereby designated to act as the initial Special
Member.  Notwithstanding any other
provision of this Agreement, the Bankruptcy (as hereinafter defined) of the
Member or Special Member shall not cause the Member or Special Member to cease
to be a member of the LLC and upon the occurrence of any such an event, the LLC
shall be continued without dissolution. 
Notwithstanding anything to the contrary contained in this Agreement,
each of the Member and Special Member waives any right it might have to agree
in writing to dissolve the LLC upon the Bankruptcy of the Member or Special
Member, or the occurrence of an event that causes Member or Special Member to
cease to be a member of the LLC.  As used
herein, “Bankruptcy” means, with respect to any person or entity, (a) if
such person or entity: (i) makes an assignment for the benefit of
creditors, (ii) files a voluntary petition in bankruptcy, (iii) is adjudged
bankrupt or insolvent, or has entered against it an order for relief, in any
bankruptcy or insolvency proceedings, (iv) files a petition or answer
seeking for itself any reorganization, arrangement, composition, readjustment,
liquidation or similar relief under any statute, law or regulation, (v) files
an answer or other pleading admitting or failing to contest the material
allegations of a petition filed against it in any proceeding of this nature, (vi) seeks,
consents to or acquiesces in the appointment of a trustee, receiver or
liquidator of such person or entity or of all or any substantial part of its
properties, or (b) one hundred and twenty (120) days after the
commencement of any proceeding against such person or entity seeking
reorganization, arrangement, composition, readjustment, liquidation or similar
relief under any statute, law or regulation, if the proceeding has not been
dismissed, or if within ninety (90) days after the appointment without such
person’s or entity’s consent or acquiescence of a trustee, receiver or
liquidator of such person or entity or of all or any substantial part of its
properties, the appointment is not vacated or stayed, or within ninety (90)
days after the expiration of any such stay, the appointment is not vacated.  The foregoing definition of “Bankruptcy” is
intended to replace and shall supersede and replace the definition of “Bankruptcy”
set forth in Sections 18-101(1) and 18-304 of the Act.

 

10.           Capital
Contributions.   The Member has made
an initial capital contribution to the LLC in the amount set forth on Schedule
A.  The Member may make, but shall
not be required to make, any additional capital contributions to the LLC.

 

11.           Additional
Contributions.  The Member may make,
but shall not be required to make, any additional capital contributions to the
LLC.

 

12.           Allocation
of Profits and Losses.  All items of
LLC income, gain, profit, loss and deduction shall be allocated to the Member.

 

13.           Distributions.  Distributions shall be made to the Member at
the times and in the aggregate amounts determined by the Manager.  Notwithstanding any provision to the contrary
contained in this Agreement, the LLC shall not be required to make a
distribution to the Member on account of its interest in the LLC if such
distribution would violate Section 18-607 of the Act or any other
applicable law.

 

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14.           Transfers
and Assignments.  The Member may
assign its limited liability company interest in the LLC to any person or
entity, which person or entity shall become a Member upon the execution a
counterpart of this Agreement.  The
Member may conditionally or collaterally assign its limited liability company
interest in the LLC to any lender of funds to the LLC and/or the Member which
assignee shall become a Member upon activation of such assignee’s rights under
the instrument of assignment in accordance therewith and in compliance
herewith.

 

If the Member transfers all of
its limited liability company interest in the LLC pursuant to this Section 14,
the transferee shall be admitted to the LLC as a member of the LLC upon its
execution of an instrument signifying its agreement to be bound by the terms
and conditions of this Agreement, which instrument may be a counterpart
signature page to this Agreement. 
Such admission shall be deemed effective immediately prior to the
transfer and, immediately following such admission, the transferor Member shall
cease to be a member of the LLC. 
Notwithstanding anything in this Agreement to the contrary, any
successor to the Member by merger or consolidation in compliance with the Loan
Documents shall, without further act, be the Member hereunder, and such merger
or consolidation shall not constitute an assignment for purposes of this
Agreement and the LLC shall continue without dissolution.

 

15.           Resignation.  Each Manager may resign his or its office
with the LLC.  Upon such resignation, the
vacancy shall be filled by the Member.

 

16.           Amendments.  This Agreement may be amended or restated
from time to time by written instrument executed by the Member.

 

17.           Liability
of Member.  Except as otherwise
expressly provided by the Act, the debts, obligations and liabilities of the
LLC, whether arising in contract, tort or otherwise, shall be the debts,
obligations and liabilities solely of the LLC, and neither the Member nor the
Special Members nor any Manager shall be obligated personally for any such
debt, obligation or liability of the LLC solely by reason of being a Member,
Special Member or Manager of the LLC

 

18.           Governing
Law.  This Agreement shall be
governed by, and construed under, the laws of the State of Delaware, all rights
and remedies being governed by said laws (without regard to conflict of law
principles).

 

19.           Lender Requirements.  Notwithstanding anything in this Agreement to
the contrary, unless and until that certain loan (the “Loan”) from
Federal Home Loan Mortgage Corporation, through its servicer, Wachovia
Multifamily Capital, Inc. (together with its successors and assigns, the “Lender”)
to the LLC evidenced and secured by certain loan documents (“Loan Documents”)
including, without limitation, a mortgage (the “Mortgage”) encumbering
the Property, has been paid in full in accordance with the terms and provisions
of such Loan Documents, the following provisions shall apply:

 

The LLC:

 

(a)           shall not engage in
any business or activity, other than the ownership, operation and maintenance
of the Property and activities incidental thereto;

 

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(b)           shall not acquire,
own, hold, lease, operate, manage, maintain, develop or improve any assets
other than the Property and such Personalty as may be necessary for the
operation of the Property and shall conduct and operate its business as
presently conducted and operated;

 

(c)           shall preserve its
existence as an entity duly formed, validly existing and in good standing (if
applicable) under the laws of the jurisdiction of its formation or organization
and shall do all things necessary to observe organizational formalities;

 

(d)           shall not merge or
consolidate with any other Person;

 

(e)           to the fullest extent
permitted by law, shall not take any action to dissolve, wind-up, terminate or
liquidate in whole or in part; to sell, transfer or otherwise dispose of all or
substantially all of its assets; to change its legal structure; transfer or
permit the direct or indirect transfer of any limited liability company or
other equity interests, as applicable, other than Transfers permitted under the
Loan Documents; issue additional limited liability company or other equity
interests, as applicable; or seek to accomplish any of the foregoing;

 

(f)            the LLC, and any
other Person on behalf of the LLC, shall not, without the prior written consent
of the Member and all of the Managers, including the Independent Manager (as
defined below):  (i) file any
insolvency, or reorganization case or proceeding, to institute proceedings to
have the LLC or the Member be adjudicated bankrupt or insolvent, (ii) institute
proceedings under any applicable insolvency law, (iii) seek any relief
under any law relating to relief from debts or the protection of debtors, (iv) consent
to the filing or institution of bankruptcy or insolvency proceedings against
the LLC or the Member, (v) file a petition seeking, or consent to,
reorganization or relief with respect to the LLC or the Member under any
applicable federal or state law relating to bankruptcy or insolvency, (vi) seek
or consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator, custodian, or any similar official for the LLC or a substantial
part of its property or for the Member or a substantial part of its property, (vii) make
any assignment for the benefit of creditors of the LLC the Member, (viii) admit
in writing the LLC’s or the Member’s inability to pay its debts generally as
they become due, (ix) take any other action which, under the terms of
certificate of formation, limited liability company agreement or any other
organizational document of the LLC or the Member, requires a consent of all of
the Members or Managers of the LLC unless at the time of such action there
shall be at least one (1) Independent Manager (as defined below) then
serving in such capacity, or (x) take action in furtherance of any of the
foregoing;

 

(g)           shall not amend or
restate its organizational documents if such change would modify the
requirements set forth in this Section 19;

 

(h)           shall not own any subsidiary or make
any investment in, any other Person;

 

(i)            shall not commingle its assets with
the assets of any other Person and shall hold all of its assets in its own
name;

 

(j)            shall not incur any debt, secured or
unsecured, direct or contingent (including, without limitation, guaranteeing
any obligation), other than, (i) the Indebtedness and (ii) customary

 

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unsecured trade payables incurred
in the ordinary course of owning and operating the Property provided the same
are not evidenced by a promissory note, do not exceed, in the aggregate, at any
time a maximum amount of two percent (2%) of the original principal amount of
the Indebtedness and are paid within sixty (60) days of the date incurred;

 

(k)           shall maintain its records, books of
account, bank accounts, financial statements, accounting records and other
entity documents separate and apart from those of any other Person and shall
not list its assets as assets on the financial statement of any other Person;
provided, however, that the LLC’s assets may be included in a consolidated
financial statement of its Affiliate provided that (i) appropriate
notation shall be made on such consolidated financial statements to indicate
the separateness of the LLC from such Affiliate and to indicate that the LLC’s
assets and credit are not available to satisfy the debts and other obligations
of such Affiliate or any other Person and (ii) such assets shall also be
listed on the LLC’s own separate balance sheet;

 

(l)            except for capital contributions or
capital distributions permitted under the terms and conditions of its
organizational documents, shall only enter into any contract or agreement with
any Member or Affiliate of the LLC or any guarantor, or any general partner,
member, principal or Affiliate thereof, upon terms and conditions that are
commercially reasonable and substantially similar to those that would be available
on an arm’s-length basis with third parties;

 

(m)          shall not maintain its assets in such
a manner that will be costly or difficult to segregate, ascertain or identify
its individual assets from those of any other Person;

 

(n)           shall not assume or guaranty
(excluding any guaranty that has been executed and delivered in connection with
the Note) the debts or obligations of any other Person, hold itself out to be
responsible for the debts of another Person, pledge its assets to secure the
obligations of any other Person or otherwise pledge its assets for the benefit
of any other Person, or hold out its credit as being available to satisfy the
obligations of any other Person;

 

(o)           shall not make or permit to remain
outstanding any loans or advances to any other Person except for those
investments permitted under the Loan Documents and shall not buy or hold
evidence of indebtedness issued by any other Person (other than cash or
investment-grade securities);

 

(p)           shall file its own tax returns
separate from those of any other Person, except to the extent that the LLC is
treated as a “disregarded entity” for tax purposes and is not required to file
tax returns under applicable law, and shall pay any taxes required to be paid
under applicable law;

 

(q)           shall hold itself out to the public
as a legal entity separate and distinct from any other Person and conduct its
business solely in its own name, shall correct any known misunderstanding
regarding its separate identity and shall not identify itself or any of its Affiliates
as a division or department of any other Person;

 

(r)            shall maintain adequate capital for
the normal obligations reasonably foreseeable in a business of its size and
character and in light of its contemplated business operations and shall

 

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pay its debts and liabilities
from its own assets as the same shall become due;

 

(s)           shall pay (or cause the Property
Manager to pay on behalf of the LLC from the LLC’s funds) its own liabilities
(including, without limitation, salaries of its own employees) from its own
funds;

 

(t)            shall not acquire obligations or
securities of its Members or Affiliates, as applicable;

 

(u)           except as contemplated or permitted
by the property management agreement with respect to the Property Manager,
shall not permit any Affiliate or constituent party independent access to its
bank accounts;

 

(v)           shall maintain a sufficient number of
employees (if any) in light of its contemplated business operations and pay the
salaries of its own employees, if any, only from its own funds;

 

(w)          The LLC shall (i) have two (2) special
members who are natural persons and (ii) have at least one (1) Independent
Manager and (iii) otherwise comply with all Rating Agencies criteria for
single member limited liability companies (including, without limitation, the
delivery of Delaware single member limited liability company opinions
acceptable in all respects to Lender and to the Rating Agencies).

 

(x)            to the fullest extent permitted by
law, shall conduct its business so that the assumptions made with respect to
the LLC in the nonconsolidation opinion provided to Lender shall be true and
correct in all respects.  In connection
with the foregoing, the LLC hereby covenants and agrees that it will comply
with or cause the compliance with, (i) all of the facts and assumptions
(whether regarding the LLC or any other Person) set forth in the
nonconsolidation opinion provided to Lender, (ii) all the representations,
warranties and covenants in this Section 19, and (ii) all the
organizational documents of the LLC.

 

Failure of the LLC, or the Member or Manager on behalf of the LLC, to
comply with any of the foregoing covenants or any other covenants contained in
this Agreement shall not affect the status of the LLC as a separate legal
entity or the limited liability of the Member or the Managers.

 

“Independent Manager” means a natural
person who is not at the time of initial appointment as a manager or at any
time while serving as a manager of the LLC or the Member and has not been at
any time during the five (5) years preceding such initial appointment (i) a
stockholder, director (with the exception of serving as an Independent Manager
of the LLC or the Member), officer, trustee, employee, partner, member,
attorney or counsel of the LLC or the Member, or any Affiliate of either of
them, (ii) a creditor, customer, supplier, or other Person who derives any
of its purchases or revenues from its activities with the LLC or the Member or
any Affiliate of either of them, (iii) a Person Controlling or under
common Control with any Person excluded from serving as Independent Manager
under (i) or (ii) or (iv) a member of the immediate family by
blood or marriage of any Person excluded from serving as Independent Manager
under (i)

 

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or (ii).  The Independent Manager shall be appointed by
the Manager.  To the fullest extent
permitted by law, including Section 18-1101(c) of the Act, the
Independent Manager shall consider the interests of the LLC, together with the
interests of the LLC’s creditors, in acting or otherwise voting on the matters
referred to in Paragraph 19(f) above.

 

An Independent
Manager may resign and, at any time and from time to time, the Manager may by
written notice to an Independent Manager discharge an Independent Manager and
appoint a successor Independent Manager for any reason, with or without cause;
provided, however, no resignation, withdrawal, dissociation or removal of an
Independent Manager, and no appointment of a successor Independent Manager,
shall be effective until the successor Independent Manager shall have accepted
his or her appointment by a written instrument.

 

The Managers
hereby appoint Melvin Herman as the initial Independent Manager and Melvin Herman
has executed counterparts to this Agreement as evidence of his acceptance of
such appointment.  All right, power and
authority of the Independent Manager shall be limited to the extent necessary
to exercise those rights and perform those duties specifically set forth in
Paragraphs 9.03 and 19(f) of this Agreement.  An Independent Manager (a) shall not be
a member of the LLC for any purposes whatsoever except under the circumstances
described in Paragraph 9.03 above, (b) shall take no action for or on behalf
of the LLC, or have any rights with respect to the LLC (including voting or
consent rights), other than those described in this Paragraph 19(f) above,
(c) shall have no liability to the LLC or the Members other than for
actual damages resulting from a breach of this Paragraph 19 or from negligence
or bad faith, (d) shall cease to be Independent Manager automatically upon
the earlier to occur of (i) the time at which this Paragraph 19 shall
cease to apply and (ii) the date on which such Independent Manager
receives written notice from the Manager discharging such Independent Manager
and appointing a successor Independent Manager and (e) shall be entitled
to compensation for serving as the Independent Manager under this Agreement and
indemnification for serving as the Independent Managers to the extent so
provided in writing.   The Independent
Manager shall not enter into a voting agreement with any creditor of the
LLC.  The Independent Manager shall be a “manager
within the meaning of Section 18-101(10) of the Act.

 

Any other capitalized term not defined in this Section 19 shall
have the meaning set forth in the Mortgage.

 

20.           Definitions

 

“Act” has the meaning set forth in the preamble to this
Agreement.

 

“Agreement” means this Limited Liability Company Agreement of
the LLC, together with the schedules attached hereto, as amended, restated or
supplemented or otherwise modified from time to time.

 

“Manager” means the person selected to be the manager of the LLC
from time to time by the Member.  A
Manager is hereby designated as a “manager” of the LLC within the meaning of Section 18-101(10) of
the Act.  The term “Manager” shall not
include any Independent Manager.

 

“Member” means HPT Associates, LLC, as the initial member of the
LLC, and includes any Person admitted as an additional member of the LLC or a
substitute member of the LLC pursuant to

 

11

 

the provisions of this Agreement, each in its capacity as a member of
the LLC; provided, however, the term “Member” shall not include the Special
Members.

 

“Person” means any individual, corporation, partnership, joint
venture, limited liability company, limited liability partnership, association,
joint stock company, trust, unincorporated organization, or other organization,
whether or not a legal entity, and any governmental authority.

 

“Special Member” means, upon such person’s admission to the LLC
as a member of the LLC pursuant to Section 9.03, a person acting as
Independent Manager or Sally E. Michael, in such person’s capacity as a member
of the LLC.  A Special Member shall only
have the rights and duties expressly set forth in this Agreement.

 

[PAGE ENDS
HERE; SIGNATURES FOLLOW]

 

12

 

IN WITNESS WHEREOF, the undersigned,
intending to be legally bound hereby, has duly executed this Limited Liability
Company Agreement as of the day and year first above written.

 

	
   

  	
  MEMBER

  
	
   

  	
   

  
	
   

  	
  HPT ASSOCIATES, LLC, a Delaware limited

  
	
   

  	
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NewReal, Inc., its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Ronald Brown, President

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Harold Brown, Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANAGERS

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Harold Brown

  
	
   

  	
   

  
	
   

  	
  NEWREAL, INC., a Massachusetts corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Ronald Brown, President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEPENDENT MANAGER

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Melvin Herman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SPECIAL MEMBERS

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Melvin Herman

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Sally E. Michael

  
										

 

13

 

SCHEDULE A

 

Hamilton
Park Towers, LLC

 

Initial
Capital Contributions and Percentage Interests

 

As of              
       , 2009

 

	
  Member

  	
   

  	
  Amount of Initial

  Capital Contribution

  	
   

  	
  Percentage Interest

  	
   

  
	
  HPT
  Associates, LLC

  	
   

  	
  $

  	
   

  	
   

  	
  100

  	
  %

  
							

 

Independent Manager:

Melvin Herman

 

Special Members:

Melvin Herman

Sally E. Michaels

 

14Exhibit 10.47

 

URANIUM
RESOURCES

 

AND

 

DONALD
C. EWIGLEBEN

 

EMPLOYMENT
AGREEMENT

 

September 3, 2009

 

This Employment Agreement
(“Agreement”) is made and
entered into as of September 3, 2009 (the “Effective Date”), by and between Uranium Resources, Inc., a Delaware corporation (hereafter “Company”), and Donald C. Ewigleben
(hereafter “Executive”).

 

1.                                       Employment.  During the Employment Period (as
defined in Section 4 hereof), the Company shall employ Executive,
and Executive shall serve, as President and Chief Executive Officer and Chief
Operating Officer of the Company and each of its subsidiaries, reporting
directly to the Board of Directors of the Company (the “Board”).  References herein to employment with or by
the Company shall include employment with or by any affiliate of the Company.

 

2.                                       Duties and Responsibilities of
Executive.

 

(a)                                  During the Employment Period (as
defined in Section 4 hereof), Executive shall devote his full time
and attention during normal business hours to the business of the Company, will
act in the best interests of the Company and will perform with due care his
duties and responsibilities.  Executive’s
duties will include those normally incidental to the position of President and
Chief Executive Officer and Chief Operating Officer as well as such additional
duties consistent therewith as may be assigned to him by the Board.  If, in its sole and complete discretion, the
Board changes Executive’s title and/or Executive’s reporting responsibilities,
the Board may make such changes, and such changes shall thereafter apply for
purposes of this Agreement, subject only to the provisions of Section 7(c) hereof.

 

(b)                                 Executive agrees to cooperate fully
with the Board and not engage directly or indirectly in any activity that
materially interferes with the performance of Executive’s duties
hereunder.  During such Employment
Period, Executive will not hold outside employment, or perform substantial
personal services for parties unrelated to the Company, without the advance
written approval of the Board; provided, that it shall not be
a violation of this Agreement for Executive to (1) serve on any corporate,
civic, or charitable boards or committees (except for boards or committees of
any business organization that competes with the Company in any business in
which the Company is regularly engaged), so long as such service does not
materially interfere with the performance of Executive’s duties and
responsibilities under this Agreement, as the Board in its reasonable
discretion shall determine, (2) manage personal investments, or (3) take
vacation days and reasonable absences due to injury or illness, as set forth
herein and/or permitted by the general policies of the Company.

 

(c)                                  Executive represents and covenants
to the Company that he is not subject or a party to any employment agreement,
non-competition covenant, non-solicitation agreement, nondisclosure agreement,
or any other agreement, covenant, understanding, or restriction that would
prohibit Executive from executing this Agreement and fully performing his
duties and responsibilities hereunder.

 

(d)                                 Executive acknowledges and agrees
that Executive owes the Company a duty of loyalty and that any obligations
described in this Agreement are in addition to, and not in lieu of, any
obligations Executive owes the Company as a matter of law.

 

3.                                       Compensation.

 

(a)                                  Sign On Bonus. 
On September 3, 2009, the Compensation Committee of the Board
granted Executive 100,000 shares of Restricted Stock under the Company’s 2007
Restricted Stock Plan that will fully vest on March 3, 2010.

 

(b)                                 Base Salary. 
Commencing October 1, 2009, and during the Employment Period, the
Company shall pay to Executive an annual base salary of $350,000 (the “Base
Salary”), payable on a not less than semi-monthly basis, in conformity
with the Company’s customary payroll practices for executive salaries.  For all purposes of this Agreement, 

 

 

Executive’s Base Salary shall include
any portion thereof which Executive elects to defer under any nonqualified plan
or arrangement.

 

(c)                                  Annual Performance Bonus. 
Executive shall be eligible for an annual discretionary performance
bonus with respect to each calendar year during the Employment Period (the “Annual
Performance Bonus”), which shall consist of two components, a cash
component targeted at 60% of Base Salary (the “Cash Component of the Annual
Performance Bonus”), and a non-cash component of up to 40% of the Base Salary,
consisting of shares of restricted stock vesting on the 60th day after grant under the Company’s 2007
Restricted Stock Plan (the “Non-Cash Component of the Annual Performance Bonus”).  The amount, if any, of the Cash Component of
the Annual Performance Bonus will be determined by the Compensation Committee
of Board, acting in its sole and complete discretion but based on annual
performance objectives established by the Compensation Committee for the
Executive.  The amount, if any, of the
Non-Cash Component of the Annual Performance Bonus will be determined by the
Compensation Committee of Board, acting in its sole and complete discretion but
based on its determination that Executive has performed above and beyond annual
performance objectives established by the Compensation Committee for the
Executive.  Bonus determinations will be
made by the Board typically within 90 calendar days of the end of each calendar
year.  The Board will, on an annual basis
(at or near the beginning of each calendar year in such Employment Period)
establish performance objectives for Executive for the upcoming year, and will
communicate such objectives to Executive.

 

(d)                                 Long-Term Performance-Based
Incentive Compensation.  The
Compensation Committee has granted Executive 300,000 shares of restricted stock
under the Company’s 2007 Restricted Stock Plan. 
Such shares shall vest in equal one-third installments on the first,
second and third anniversary dates of this Agreement based on annual
performance objectives to be determined each year by the Compensation
Committee. For the year ending September 3, 2010, vesting of the first
installment will be based on the following criteria: (i) the Company’s
stock price performance being equal to or better than the median of the Company’s
peer group as set out in the Company’s prior year annual report during the
twelve month period beginning on September 3, 2009 (ii) maintaining a
best-in-class safety environment of all employees over the twelve month period
as determined by an annual review of the Health, Safety and Environmental
Committee of the Board; (iii) achieving an environmental performance record
in full compliance with Federal, State and local standards for the 12 months
ending September 3, 2010; (iv) delivery of a strategic plan that is
adopted by the Board of the Company on or before March 1st, 2010; and (v) successfully
completing a financing by September 3, 2010 that avoids a “going concern”
issue.  The performance metrics will each
have a 20% weighting and each is subject to an all or nothing threshold except
for the stock price performance metric which is subject to a 90% threshold.  The performance metrics will be set forth
with more particularity in the award agreement approved annually by the
Compensation Committee.

 

(e)                                  Stock Ownership Target. 
Within 5 years from the date of this Agreement, Executive is expected to
own shares of Company Common Stock equal in value to two times his Base
Salary.  The following will count towards
meeting the required ownership level: shares owned beneficially;  restricted stock or stock units held under
any Company restricted stock or similar program (whether vested or unvested);
shares owned jointly with or in trust for immediate family members residing in
the same household; and shares subject to any vested but unexercised stock
options.  The value of the stock held by
Executive on any date of determination will be equal to the greater of (1) Executive’s
acquisition cost and (2) the average market price per share of the Common
Stock on the last trading day of each of the four completed quarters prior to
the determination.

 

(f)                                    Withholding. 
Executive’s Base Salary, Annual Bonus, and other compensation payments
hereunder shall be subject to such payroll and other taxes, withholdings,
assessments and deductions as may be required by applicable law.

 

4.                                       Term of
Employment.

 

(a)                                  The initial term of this Agreement
shall be for the period beginning on the Effective Date and ending at midnight
(Eastern Time) on the second anniversary of the Effective Date.  The term shall be extended automatically for
successive one-year periods unless either party gives the other written notice
of its intent to terminate the Agreement not less than 90 days prior to the end
of the then current term.  The initial
term and any extensions are hereinafter referred to as the “Term.”  The date on which this Agreement is
terminated at the end of the Term or in accordance with Section 6 shall be
referred to herein as the “the Termination Date;” provided, however, that until
October 1, 2009, Executive shall be in a transition period from his former
employer and may perform services for his former employer.  The Termination Date shall also constitute
the employment termination date.

 

(b)                                 The period commencing on the
Effective Date and ending at the close of business on the Termination Date
shall constitute the “Employment Period.”

 

2

 

(c)                                  Notwithstanding any other provision
of this Agreement, this Agreement may be terminated at any time during the
Employment Period in accordance with Section 6.

 

5.                                       Benefits.  Subject to the terms and conditions of
this Agreement, Executive shall be entitled to the following benefits during
the Employment Period:

 

(a)                                  Reimbursement of Business Expenses. 
The
Company agrees to promptly reimburse Executive for reasonable business-related
expenses incurred in the performance of Executive’s duties under this Agreement
in accordance with Company policies.

 

(b)                                 Benefit Plans and Programs. 
To
the extent permitted by applicable law, Executive (and where applicable, his
plan-eligible dependents) will be eligible to participate in all benefit plans
and programs, including improvements or modifications of the same, then being
actively maintained by the Company for the benefit of its executive employees
(or for an employee population which includes its executive employees), subject
in any event to the eligibility requirements and other terms and conditions of
those plans and programs, including, without limitation, 401(k) plan,
medical and dental insurance, life insurance and disability insurance.  The Company will not, however, by reason of
this Section 5(b), have any obligation to institute, maintain, or
refrain from changing, amending, or discontinuing any such benefit plan or
program.

 

(c)                                  Accommodations; Moving Expenses. 
The Company will reimburse Executive for reasonable furnished
accommodation expenses for up to twelve months after his arrival in any city
identified by the Board other than Denver, Colorado as a location from which
Executive should operate in order to give the Company time to determine the
permanent location of Company headquarters. 
Upon a determination by the Board that a city other than Denver,
Colorado will become the permanent headquarters of the Company, consideration
of relocation expenses will be made by the Board.

 

6.                                       Termination of Agreement.

 

(a)                                  Automatic Termination in the Event
of Death.  This Agreement shall automatically terminate
in the event of the Executive’s death.

 

(b)                                 Company’s Right to Terminate.  At any time  during the
Employment Period, the Company shall have the right to terminate this Agreement
with the Company for any of the following reasons:

 

(1)                                  Upon Executive’s Disability (as
defined below);

 

(2)                                  For Cause (as defined in Section 7);
or

 

(3)                                  For any other reason whatsoever, in
the sole and complete discretion of the Company.

 

(c)                                  Executive’s Right to Terminate.  At any time  during the Employment Period, Executive will have the
right to terminate this Agreement with the Company for:

 

(1)                                  Good Reason (as defined in Section 7);
or

 

(2)                                  For any other reason whatsoever, in
the sole and complete discretion of Executive. 
An election by Executive not to renew this Agreement at the end of the
Term, shall constitute a termination of this Agreement by Executive under this
subsection.

 

(d)                                 “Disability.” 
For purposes of this Agreement, “Disability” means that Executive has
sustained sickness or injury that renders Executive incapable, with reasonable
accommodation, of performing the duties and services required of Executive
hereunder for a period of 90 consecutive calendar days or a total of 120
calendar days during any 12-month period.

 

(e)                                  “Notices.” 
Any termination of this Agreement with the Company by the Company under Section 6(b) or
by Executive under Section 6(c) shall be communicated by a
Notice of Termination to the other party. 
A “Notice of Termination” means a written notice that (1) indicates
the specific termination provision in this Agreement relied upon and (2) if
the termination is by the Company for Cause or by Executive for Good Reason,
sets forth in reasonable detail the facts and circumstances claimed to provide
a basis for termination of Executive’s employment under the provision so
indicated. The Notice of Termination must specify Executive’s the Termination
Date.  The Termination Date may be as
early as 14 calendar days after such Notice is given but no later than 60
calendar days after such Notice is given, unless otherwise agreed to by the
parties in writing.

 

3

 

7.                                       Severance Payments.

 

(a)                                  Termination
by the Company.  If this
Agreement automatically terminates under Section 6(a) or if the
Company terminates this Agreement during the Employment Period pursuant
to Sections 6(b)(1)or 6(b)(3) hereof, then the Company shall pay
Executive severance, in a lump sum within 10 days after the
Termination Date, by check (but in any event subject to all applicable
withholding), as follows:

 

(1)                                  One year’s Base Salary; and

 

(2)                                  Bonus at Guideline (as hereinafter
defined).

 

(3)                                  Bonus at Guideline means 60%
of Base Salary.

 

(b)                                 Termination by Executive for Good Reason. 
If Executive terminates this Agreement during the Employment Period
pursuant to Section 6(c)(1) hereof, then the Company shall pay
Executive severance, in a lump sum within 30 days after the
Termination Date, by check (but in any event subject to all applicable
withholding), as follows:

 

(1)                                  One year’s Base Salary; and

 

(2)                                  Bonus at Guideline.

 

(c)                                  Termination by Executive for Good Reason after a
Change in Control. 
If a Change in Control occurs and Executive terminates this Agreement
during the Employment Period pursuant to Section 6(c)(1) hereof
within 30 days after such occurrence, then the Company shall pay Executive
severance, in a lump sum within 30 days after the
Termination Date, by check (but in any event subject to all applicable
withholding), as follows:

 

(1)                                  Two year’s Base Salary; and

 

(2)                                  Bonus at Guideline.

 

(d)                                 Termination upon Failure to Renew by
the Company.  In the event that this Agreement shall
terminate at the end of the Term and is not renewed as a result of a decision
by the Company not to renew this Agreement, prior to a decision by Executive
not to renew this Agreement, the Company shall pay Executive severance, in a
lump sum within 30 days after the Termination Date, equal to
one year’s Base Salary by check.

 

(e)                                  Additional Benefits.  If the Company is required to pay
Executive severance by the express terms of Section 7(a) or 7(b), or
7(c), or 7(d)then:

 

(1)                                  Such severance shall be paid in
addition to any other payments the Company may make to Executive (including,
without limitation, salary, bonuses, equity plans, incentive compensation
plans, fringe benefits, and expense reimbursements) in discharge of the Company’s
obligations to Executive under this Agreement with respect to periods ending
coincident with or prior to the Termination Date.

 

(2)                                  Executive, Executive’s spouse, and
Executive’s dependents will continue to be eligible for coverage under the
Company’s group health plan or any successor plan on the same basis as active
executive employees of the Company, their spouses, and their dependents for a
period of twelve months, commencing on the Termination Date (the “Severance
Period”).  If and when group health
coverage under another group health plan first becomes available thereafter to
Executive, Executive’s spouse, or Executive’s dependents (as applicable), the
Company’s obligations under this paragraph will cease with respect to each
person to whom such coverage becomes available, and such person shall have such
“COBRA” benefit continuation rights as may then be available under relevant
law, treating Executive’s the Termination Date as the date of such person’s “qualifying
event.”

 

(3)                                  To the extent Executive has not
previously vested in such rights (whether in accordance with Section 8
hereof of otherwise), Executive shall become fully vested in all of the rights
and interests held by Executive under the Company’s stock and other equity
plans as of his the Termination Date, including without limitation any stock
options, restricted stock, restricted stock units, performance units, and/or
performance shares.

 

4

 

(4)                                  Payments under Sections 7(a) or
7(b) or 7(c) or 7(d) shall be in lieu of any severance
benefits otherwise due to Executive under any severance pay plan or program
maintained by the Company that covers its employees and/or its executives.

 

(5)                                  The exercise date of any options
held by Executive shall be extended to a date that is 90 days after the
Termination Date.

 

(f)                                    “Cause” means the occurrence or existence, prior to
occurrence of circumstances constituting Good Reason, of any of the following
events during the Employment Period:

 

(1)                                  Executive’s gross negligence or
material mismanagement in performing, or material failure or inability (excluding
as a result of death or Disability) to perform, Executive’s duties and
responsibilities as described herein or as lawfully directed by the Board;

 

(2)                                  Executive’s having committed any act
of willful misconduct or material dishonesty against the Company or any of its
affiliates (including theft, misappropriation, embezzlement, forgery, fraud,
falsification of records, or misrepresentation) or any act that results in, or
could reasonably be expected to result in, material injury to the reputation, business
or business relationships of the Company or any of its affiliates;

 

(3)                                  Executive’s material breach of this
Agreement, any fiduciary duty owed by Executive to the Company or its
affiliates, or any written workplace policies applicable to Executive (including
the Company’s code of conduct and policy on workplace harassment) whether
adopted on or after the date of this Agreement;

 

(4)                                  Executive’s having been convicted
of, or having entered a plea bargain, a plea of nolo contendere or settlement admitting guilt for,
any felony, any crime of moral turpitude, or any other crime that could
reasonably be expected to have a material adverse impact on the Company’s or
any of its affiliates’ reputations; or

 

(5)                                  Executive’s having committed any
material violation of any federal law regulating securities (without having
relied on the advice of the Company’s attorney) or having been the subject of
any final order, judicial or administrative, obtained or issued by the
Securities and Exchange Commission, for any securities violation involving
fraud, including, for example, any such order consented to by Executive in
which findings of facts or any legal conclusions establishing liability are
neither admitted nor denied.

 

(g)                                 “Good Reason” means the occurrence, prior to occurrence of
circumstances constituting Cause, of any of the following events during the
Employment Period without Executive’s consent:

 

(1)                                  Any material breach by the Company
of this Agreement, provided
that Executive provides the Board written notice of such breach within 90 days
from the first date that he is aware, or reasonably should be aware, of such
breach and such breach is not remedied within 30 days of the Board’s receipt of
such written notice;

 

(2)                                  Any requirement by the Company that
Executive relocate outside of the Denver metropolitan area;

 

(3)                                  Failure of any successor to assume
this Agreement not later than the date as of which it acquires substantially
all of the equity, assets or businesses of the Company;

 

(4)                                  Any material reduction in Executive’s
title, responsibilities, or duties or the Board directs Executive to report to
other than the Board; or

 

(5)                                  The assignment to Executive of any
duties materially inconsistent with his duties as President and Chief Executive
Officer of the Company.

 

(h)                                 Exclusive Payments.                                    Except as provided above, no
severance or other payment in the way of severance shall be made to Executive
upon termination of this Agreement.

 

5

 

8.                                       Change of Control.

 

(a)                                  If a Change of Control occurs during
the Employment Period, Executive shall thereupon become 100% vested in all of
the rights and interests then held by Executive under the Company’s stock and
other equity plans (to the extent not theretofore vested), including without
limitation any stock options, restricted stock, restricted stock units,
performance units, and/or performance shares.

 

(b)                                 “Change of Control” means (i) after
the Effective Date, any person or group of affiliated or associated persons not
a shareholder on the date hereof acquires more than 50% of the voting power of
the Company; (ii) the consummation of a sale of all or substantially all
of the assets of the Company; (iii) the dissolution of the Company; (iv) a
majority of the members of the Board are replaced during any 12-month period;
or (iv) the consummation of any merger, consolidation, or reorganization
involving the Company in which, immediately after giving effect to such merger,
consolidation or reorganization, less than 51% of the total voting power of
outstanding stock of the surviving or resulting entity is then “beneficially
owned” (within the meaning of Rule 13d-3 under the Securities Exchange Act
of 1934, as amended) in the aggregate by the stockholders of the Company
immediately prior to such merger, consolidation or reorganization.

 

9.                                       Parachute
Payment.  Notwithstanding any provision herein, if the
amount payable hereunder should constitute a parachute payment as defined in Section 280
G of the Internal Revenue Code of the United States (Code), the payment will be
reduced to the largest amount that would result in no portion being subject to
the excise tax imposed by, or the disallowance of a deduction under, applicable
provisions of the Code.

 

10.                                 Conflicts
of Interest.  Executive agrees that he shall promptly
disclose to the Board any conflict of interest involving Executive upon
Executive becoming aware of such conflict. 
Executive’s ownership of an interest not in excess of five percent in a
business organization that competes with the Company shall not be deemed to
constitute a conflict of interest.

 

11.                                 Confidentiality.  The Company agrees to provide Executive
valuable Confidential Information of the Company and of third parties who have
supplied such information to the Company.  In consideration of such Confidential
Information and other valuable consideration provided hereunder, Executive
agrees to comply with this Section 11.

 

(a)                                  “Confidential Information” means, without limitation and
regardless of whether such information or materials are expressly identified as
confidential or proprietary, (i) any and all non-public, confidential or
proprietary information or work product of the Company or its affiliates, (ii) any
information that gives the Company or its affiliates a competitive business
advantage or the opportunity of obtaining such advantage, (iii) any
information the disclosure or improper use of which is reasonably expected to
be detrimental to the interests of the Company or its affiliates, (iv) any
trade secrets of the Company or its affiliates, and (v) any other
information of or regarding the Company or any of its affiliates, or its or
their past, present or future, direct or indirect, potential or actual
officers, directors, employees, owners, or business partners, including but not
limited to information regarding any of their businesses, operations, assets,
liabilities, properties, systems, methods, models, processes, results,
performance, investments, investors, financial affairs, future plans, business
prospects, acquisition or investment opportunities, strategies, business
partners, business relationships, contracts, contractual relationships,
organizational or personnel matters, policies or procedures, management or
compensation matters, compliance or regulatory matters, as well as any
technical, seismic, industry, market or other data, studies or research, or any
forecasts, projections, valuations, derivations or other analyses, performed,
generated, collected, gathered, synthesized, purchased or owned by, or otherwise
in the possession of, the Company or its affiliates or which Executive has
learned of through his employment with the Company.  Confidential Information also includes any
non-public, confidential or
proprietary information about or belonging to any third party that has been
entrusted to the Company or its affiliates.  Notwithstanding the foregoing, Confidential
Information does not include any information which is or becomes generally known
by the public other than as a result of Executive’s actions or inactions.

 

(b)                                 Protection. 
In return for the Company’s promise to provide Executive with
Confidential Information, Executive promises (i) to keep the Confidential
Information, and all documentation, materials and information relating thereto,
strictly confidential, (ii) not to use
the Confidential Information for any purpose other than as required in
connection with fulfilling his duties as President and Chief Executive Officer
for the benefit of the Company, and (iii) to return to the Company all
documents containing Confidential Information in Executive’s possession upon
separation from the Company for any reason.

 

(c)                                  Value and Security.  Executive understands and agrees that all
Confidential Information, and every portion thereof, constitutes the valuable
intellectual property of the Company, its affiliates, and/or third parties, and
Executive further acknowledges the importance of maintaining the security and
confidentiality of the Confidential Information and of not misusing the
Confidential Information.

 

6

 

(d)                                 Disclosure Required By Law. 
If Executive is legally required to disclose any Confidential
Information, Executive shall promptly notify the Company in writing of such
request or requirement so that the Company may seek an appropriate protective
order or other relief.  Executive agrees
to cooperate with and not to oppose any effort by the Company to resist or
narrow such request or to seek a protective order or other appropriate
remedy.  In any case, Executive will (i) disclose
only that portion of the Confidential Information that, according to the advice
of Executive’s counsel, is required to be disclosed (and Executive’s disclosure
of Confidential Information to Executive’s counsel in connection with obtaining
such advice shall not be a violation of this Agreement), (ii) use
reasonable efforts (at the expense of the Company) to obtain assurances that
such Confidential Information will be treated confidentially, and (iii) promptly
notify the Company in writing of the items of Confidential Information so
disclosed.

 

(e)                                  Third-Party Confidentiality Agreements.  To the extent that the Company
possesses any Confidential Information which is subject to any confidentiality
agreements with, or obligations to, third parties, Executive will comply with
all such agreements or obligations in full. 
The immediately preceding sentence shall apply only if the Company has
provided Executive with a copy of such agreements, and Executive may disclose
such agreements and any related Confidential Information to Company’s attorneys
and rely on their advice regarding compliance therewith.

 

(f)                                    Survival. 
The covenants made by Executive in this Section 11, other
than Paragraph (f) hereof, will be effective only during the Employment
Period and for the two-year period immediately following the Employment Period,
and to that extent (and only that extent) shall survive termination of this
Agreement.  The covenants made by
Executive in Paragraph (f) of this Section 11 will be
effective during the period specified in the confidentiality agreements
described therein.

 

12.                                 Withholdings.  The Company may withhold and deduct
from any payments made or to be made pursuant to this Agreement (a) all
federal, state, local and other taxes as may be required pursuant to any law or
governmental regulation or ruling, and (b) any deductions consented to in
writing by Executive.

 

13.                                 Severability.  It is the desire of the parties hereto
that this Agreement be enforced to the maximum extent permitted by law, and
should any provision contained herein be held unenforceable by a court of
competent jurisdiction or arbitrator (pursuant to Section 15), the
parties hereby agree and consent that such provision shall be reformed to
create a valid and enforceable provision to the maximum extent permitted by
law; provided,
however, if
such provision cannot be reformed, it shall be deemed ineffective and deleted
from this Agreement without affecting any other provision of this Agreement.

 

14.                                 Title
and Headings; Construction.  Titles and headings to Sections hereof
are for the purpose of reference only and shall in no way limit, define or
otherwise affect the provisions hereof. 
Any and all Exhibits referred to in this Agreement are, by such
reference, incorporated herein and made a part hereof for all purposes.  The words “herein”, “hereof”, “hereunder” and
other compounds of the word “here” shall refer to the entire Agreement and not
to any particular provision hereof.

 

15.                                 Arbitration; Injunctive Relief; Attorneys’
Fees.

 

(a)                                  Subject to Section 15(b),
any dispute, controversy or claim between Executive and the Company arising out
of or relating to this Agreement, Executive’s employment with Company, or the
termination of either (other with respect to claims arising exclusively under
one (1) or more of the Company’s employee benefit plans subject to ERISA)
will be finally settled by arbitration in Denver, Colorado before, and in
accordance with the rules for the resolution of employment disputes then
obtaining of, the American Arbitration Association.  The arbitrator’s award shall be final and
binding on both parties.

 

(b)                                 Notwithstanding Section 15(a),
an application for emergency or temporary injunctive relief by either party
shall not be subject to arbitration under this Section 15;
provided, however, that the remainder of any such dispute (beyond the
application for emergency or temporary injunctive relief) shall be subject to
arbitration under this Section 15. 
Executive acknowledges that Executive’s violation of Sections 10
and/or 11 of this Agreement will cause irreparable harm to the Company,
Executive agrees not to contest that Executive’s violation of Sections 10
and/or 11 of this Agreement will cause irreparable harm to the Company and
Executive agrees that the Company shall be entitled as a matter of right to
specific performance of Executive’s obligations under Sections 10 and 11
and an injunction, from any court of competent jurisdiction, restraining any
violation or further violation of such agreements by Executive or others acting
on his/her behalf, without any showing of irreparable harm and without any
showing that the Company does not have an adequate remedy at law.  The Company’s right to injunctive relief
shall be cumulative and in addition to any other remedies provided by law or
equity.

 

(c)                                  Each side shall share equally the
cost of the arbitrator and bear its own costs and attorneys’ fees incurred in
connection with any arbitration, unless a statutory claim authorizing the award
of attorneys’ fees is at issue, in which event the arbitrator may award a
reasonable attorneys’ fee in accordance with the jurisprudence of that statute.

 

7

 

(d)                                 Nothing in this Section 15
shall prohibit a party to this Agreement from (i) instituting litigation
to enforce any arbitration award or (ii) joining another party to this
Agreement in a litigation initiated by a person which is not a party to this
Agreement.

 

16.                                 Governing
Law.  THIS AGREEMENT WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO, WITHOUT
REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS. 
THE EXCLUSIVE VENUE FOR THE RESOLUTION OF ANY DISPUTE RELATING TO THIS
AGREEMENT OR EXECUTIVE’S EMPLOYMENT (THAT IS NOT SUBJECT TO ARBITRATION UNDER SECTION 15
FOR ANY REASON) SHALL BE IN THE STATE AND FEDERAL COURTS LOCATED IN DENVER,
COLORADO AND THE PARTIES HEREBY EXPRESSLY CONSENT TO THE JURISDICTION OF THOSE
COURTS.

 

17.                                 Entire
Agreement and Amendment.  This Agreement contains the entire
agreement of the parties with respect to Executive’s employment and the other
matters covered herein (except to the extent that other agreements are
specifically referenced herein); moreover, this Agreement supersedes all prior
and contemporaneous agreements and understandings, oral or written,
between the parties hereto concerning the subject matter hereof and
thereof.  This Agreement may be amended,
waived or terminated only by a written instrument executed by both parties
hereto.

 

18.                                 Survival
of Certain Provisions.  Wherever appropriate to the intention
of the parties hereto, the respective rights and obligations of said parties,
including, but not limited to, the rights and obligations set forth in Sections
6 through 16 hereof, shall survive any termination or expiration of this
Agreement for any reason.

 

19.                                 Waiver
of Breach.  No
waiver by either party hereto of a breach of any provision of this Agreement by
the other party, or of compliance with any condition or provision of this
Agreement to be performed by such other party, will operate or be construed as
a waiver of any subsequent breach by such other party or any similar or
dissimilar provision or condition at the same or any subsequent time.  The failure of either party hereto to take
any action by reason of any breach will not deprive such party of the right to
take action at any time while such breach continues.

 

20.                                 Assignment.  Neither
this Agreement nor any rights or obligations hereunder shall be assignable or
otherwise subject to hypothecation by Executive (except by will or by operation
of the laws of intestate succession) or by the Company, except that the Company
may assign this Agreement to any successor (whether by merger, purchase or
otherwise) to all or substantially all of the equity, assets or businesses of
the Company, if such successor expressly agrees to assume the obligations of
the Company hereunder.

 

21.                                 Notices.  Notices provided for in this
Agreement shall be in writing and shall be deemed to have been duly received (a) when
delivered in person or sent by facsimile transmission, (b) on the first
business day after such notice is sent by air express overnight courier
service, or (c) on the third business day following deposit in the United
States mail, registered or certified mail, return receipt requested, postage
prepaid and addressed, to the following address, as applicable:

 

(a)                                  If to Company, addressed to: 405
Highway 121 Bypass, Building A, Suite 110, Lewisville, TX 75067;
Attn:  Chairman, Board of Directors.

 

(b)                                 If to Executive, addressed to the
address set forth below Executive’s name on the execution page hereof; or
to such other address as either party may have furnished to the other party in
writing in accordance with this Section 21.

 

22.                                 Counterparts.  This Agreement may be executed in any
number of counterparts, each of which when so executed and delivered shall be
an original, but all such counterparts shall together constitute one and the
same instrument.  Each counterpart may
consist of a copy hereof containing multiple signature pages, each signed by
one party, but together signed by both parties hereto.

 

23.                                 Definitions.  The parties agree that as used in this
Agreement the following terms shall have the following meanings: an “affiliate”
of a person shall mean any person directly or indirectly controlling,
controlled by, or under common control with, such person; the terms “controlling,
controlled by, or under common control with” shall mean the possession,
directly or indirectly, of the power to direct or influence or cause the
direction or influence of management or policies (whether through ownership of
securities or other ownership interest or right, by contract or otherwise) of a
person; the term “person” shall mean a natural person, partnership (general or
limited), limited liability Company, trust, estate, association, corporation,
custodian, nominee, or any other individual or entity in its own or any
representative capacity, in each case, whether domestic or foreign.

 

24.                                 Internal Revenue Code Section 409A
Compliance.  Notwithstanding anything in this Agreement to
the contrary, if any provision hereof would result in the imposition of an
additional tax under Internal Revenue Code Section 409A and related
regulations and Treasury pronouncements, that provision will be reformed to
avoid imposition of the applicable tax.

 

8

 

SIGNATURE PAGE FOLLOWS

 

IN WITNESS WHEREOF, Executive and the Company
have executed this Agreement to be effective for all purposes as of the
Effective Date.

 

 

	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Donald C. Ewigleben

  
	
   

  	
  Donald C. Ewigleben

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  URANIUM RESOURCES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ Paul K. Willmott

  
	
   

  	
   

  	
  Paul K. Willmott, Chairman

  

 

9

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