Document:

Exhibit 10.21

 

BE RESOURCES INC.

 

STOCK OPTION AGREEMENT

 

THIS STOCK OPTION AGREEMENT
(the “Agreement”) is made and entered into as of December 7, 2007 (the “Date
of Grant”), by and between BE Resources Inc., a Colorado corporation (the “Corporation”),
and                                     
(the “Optionee”).

 

WITNESSETH:

 

WHEREAS, on December 7,
2007, the Board of Directors determined that the Optionee should receive an
option to purchase shares of the Corporation’s Common Stock pursuant to the
Corporation’s Stock Option Plan (the “Plan”) in order to provide the Optionee
with an opportunity for investment in the Corporation and additional incentive
to pursue the success of the Corporation, said option to be for the number of
shares, at the price per share and on the terms set forth in this Agreement;
and

 

WHEREAS, the Optionee
desires to receive an option on the terms and conditions set forth in this
Agreement; and

 

WHEREAS, the Optionee
understands that any option granted pursuant to this Agreement is subject to
the terms of the Plan and Optionee acknowledges receipt of a copy of the Plan,
which is attached hereto and incorporated herein by reference as Exhibit A.

 

NOW, THEREFORE, the parties
agree as follows:

 

1.  Grant of Option.  The Corporation hereby grants to Optionee, as
a matter of separate agreement and not in lieu of cash payment for service, the
right and option (the “Option”) to purchase all or any part of an aggregate of
800,000 shares (the “Options”), if and when vested as described below, of reserved
authorized and unissued no par value Common Stock of the Corporation (the “Option
Shares”) pursuant to the terms and conditions set forth in this Agreement.

 

2.  Option Price.  At any time when shares are to be purchased
pursuant to the Option, the purchase price for each Option Share shall be CAD
$0.25 (the “Option Price”).

 

3.  Option Vesting.  The first 25% of the Options shall be
immediately vested; an additional 25% of the Options shall vest on that date
which is six months after the Date of Grant, a further additional 25% of the
Options shall vest on that date which is twelve months after the Date of Grant,
and the final 25% of the Options shall vest on that date which is eighteen
months after the Date of Grant (each date a “Vesting Date”), in each case
provided that the Optionee is still employed by, a director of, or providing
services to, the Corporation as a consultant on the Vesting Date.

 

4.  Option Period.

 

(a)                                  The Option
period shall commence as of the Date of Grant and shall terminate five years
from the Date of Grant, unless terminated earlier as provided in this
Agreement.

 

(b)                                 Any Option held
by an Optionee at the time of his death, to the extent it is otherwise
exercisable, may be exercised by his estate, subject to any limitation otherwise
applicable to such Option, only within one year of his death.

 

(c)                                  Except as
otherwise set forth in the Plan, if an Optionee, for any reason other than the
Optionee’s death, ceases to be employed by, a consultant for, or a director of,
either the Corporation or a subsidiary of the Corporation, any Option held by
the Optionee at the time Optionee ceases to be an employee, consultant or
director may be exercised within 90-days after the date of such cessation, but
only to the extent that the Option was exercisable according to its terms on
the date of such cessation. After such 90-day period, any unexercised portion
of an Option shall expire.

 

 

5.  Exercise of Option.

 

(a)                                  The Option may
be exercised, in whole or in part, by delivering to the Corporation:

 

(i)                                     a Notice and
Agreement of Exercise of Option, substantially in the form attached hereto as Exhibit B, specifying the number of
Option Shares with respect to which the Option is exercised; and

 

(ii)                                  full payment of
the Option Price for such shares, in cash.

 

(b)                                 Notwithstanding
the foregoing, an Option may not be exercised in part unless the purchase price
of the Option Shares purchased is at least CAD $1,000.00.

 

(c)                                  Promptly upon
receipt of the Notice and Agreement of Exercise of Option and full payment of
the Option Price by the Optionee (including payment or provision for payment of
any applicable withholding or other tax), the Corporation shall deliver to the
Optionee a properly executed certificate or certificates representing the
Option Shares being purchased.

 

(d)                                 As a condition
to delivery of a certificate representing the Option Shares, Optionee may be
required to: (i) execute and deliver to the Corporation a Form W-9
(United States Department of Treasury, Internal Revenue Service) providing a
taxpayer identification number and stating whether Optionee is subject to
back-up withholding; and/or (ii) execute any and all documents that may be
required under the laws of Canada, the United States, state blue sky laws, or
by other securities laws, regulations, or appropriate regulatory agencies. The
Corporation shall be entitled to require advance payment of any withholding
taxes by Optionee or shall withhold a number of shares equal to any required
withholding, at its sole option.

 

6.  Securities Laws Requirements.

 

(a)                                  No Option
Shares shall be issued unless and until, in the opinion of the Corporation, any
applicable registration requirements of the United States Securities Act of
1933, any applicable listing requirements of any securities exchange on which
stock of the same class is listed, and any other requirements of law or any
regulatory bodies having jurisdiction over such issuance and delivery have been
fully complied with.

 

(b)                                 Pursuant to the
terms of the Notice and Agreement of Exercise of Option that shall be delivered
to the Corporation upon each exercise of the Option, the Optionee shall
acknowledge, represent, warrant and agree as follows:

 

(i)                                     All Option
Shares shall be acquired solely for the account of the Optionee for investment purposes
only and with no view to their resale or other distribution of any kind; and

 

(ii)                                  No Option Share
shall be sold or otherwise distributed in violation of the Securities Act of
1933 or any other applicable securities laws.

 

(c)                                  Optionee
understands that the Corporation is under no obligation to register the Option
Shares under the Securities Act of 1933, as amended (the “Act”) and that in the
absence of any such registration, the Option Shares cannot be sold unless they
are sold pursuant to an exemption from registration under the Act. The Optionee
understands that in the absence of registration, the certificate representing
the Option Shares shall bear a legend restricting the underlying shares from
transfer in accordance with the Act. The Corporation is under no obligation to
comply, or to assist the Optionee in complying with any exemption from such
registration requirements, including supplying the Optionee with any
information necessary to permit routine sales of the Stock under Rule 144
of the Securities and Exchange Commission. Optionee also understands that with
respect to Rule 144, routine sales of securities made in reliance upon
such Rule can only be made in limited amounts in accordance with the terms

 

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and conditions of the Rule,
and that in cases in which the Rule is inapplicable, compliance with
either Regulation A or another disclosure exemption under the Act will be
required. Thus, the Option Shares will have to be held indefinitely in the
absence of registration under the Act or an exemption from registration.

 

(d)                                 The Optionee
fully understands that the Option Shares have not been registered under the Act
and that they will be issued in reliance upon an exemption, which is available
only if Optionee acquires such shares for investment and not with a view to
distribution. Optionee is familiar with the phrase “acquired for investment and
not with a view to distribution” as it relates to the Act and the special
meaning given to such term in various releases of the Securities and Exchange
Commission.

 

7.  Transferability of Option.  The Option shall not be transferable except
by will or the laws of descent and distribution, and any attempt to do so shall
void the Option.

 

8.  Adjustment.  As set forth in the Plan, the aggregate number
and kind of shares available under the Plan and the exercise price therefor
shall be subject to adjustment by the Board in the event of a reclassification,
recapitalization, stock split, stock dividend, merger, consolidation,
combination or other change in the corporate structure of the Corporation
occurring after the date of grant of any Options.

 

9.  Privilege of Ownership.  Optionee shall not have any of the rights of
a shareholder with respect to the shares covered by the Option except to the
extent that one or more certificates for such shares shall be delivered to him
upon exercise of the Option.

 

10.  Notices.  Any notices required or permitted to be given
under this Agreement shall be in writing and shall be addressed to the party to
be notified as shown below:

 

	
  Corporation:

  	
  BE Resources Inc. 

  107 Hackney Cr., Box 684 

  Elephant Butte, NM 87935

  
	
   

  	
   

  
	
  Optionee:

  	
  At the address listed below his name on the last page of this
  Agreement.

  

 

Any party may change its address for purposes
of this paragraph by giving the other party written notice of the new address
in the manner set forth above.

 

11.  General
Provisions.  This instrument: (a) contains,
along with the Plan, the entire agreement among the parties, (b) may not
be amended nor may any rights hereunder be waived except by an instrument in
writing signed by the parties sought to be charged with such amendment or
waiver, (c) shall be constructed in accordance with, and governed by, the
laws of the State of Colorado, (d) shall be binding upon and shall inure
to the benefit of the parties and their respective personal representatives and
assigns, except as above set forth, (e) may be executed in several
counterparts and by facsimile each of which shall be deemed an original but all
of which taken together shall constitute one and the same instrument, and (f) shall
be subject to the provisions of the Plan, which Plan provisions shall govern if
they conflict with any terms herein and any variations thereof shall be deemed
to refer to the masculine, feminine or neuter, singular or plural as the
identity of the parties hereto may require. Capitalized terms in this Agreement
that are not defined shall have the meaning set forth in the Plan.

 

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IN WITNESS WHEREOF, the parties have executed
this Agreement on the dates set forth below, to be effective as of the date and
year first above written.

 

	
   

  	
   

  	
   

  	
  BE RESOURCES INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  OPTIONEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

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EXHIBIT A

 

BE Resources Inc. Stock Option Plan

 

 

BE RESOURCES INC.

 

STOCK OPTION PLAN

 

SECTION 1

PURPOSE AND SCOPE

 

1.1                                 The purpose of
this Stock Option Plan is to provide a means whereby BE Resources Inc., a
Colorado corporation (the “Corporation”),
may attract able persons to remain in or to enter the employ of the Corporation
or a Subsidiary of the Corporation and to provide a means whereby those
employees, officers, directors and other individuals or entities upon whom the
responsibilities of the successful administration, management, planning, and/or
organization of the Corporation may rest, and whose present and potential
contributions to the welfare of the Corporation or a Subsidiary of the
Corporation are of importance, can acquire and maintain stock ownership,
thereby strengthening their concern for the long-term welfare of the
Corporation. A further purpose of the Plan is to provide such employees and individuals
or entities with additional incentive and reward opportunities designed to
enhance the profitable growth of the Corporation over the long term.
Accordingly, the Plan provides for the grant of Incentive Stock Options and
Options which do not constitute Incentive Stock Options or any combination of
the foregoing.

 

1.2                                 The terms and
conditions set forth in this Plan are subject to the rules, regulations and
policies of the stock exchange on which the Common Shares may be listed or
quoted including, if listed on the TSX-V, the provisions of Policy 4.4 of
the TSX-V.

 

SECTION 2

DEFINITIONS

 

2.1                                 The following
definitions shall be applicable during the term of the Plan unless specifically
modified by any paragraph:

 

(a)                                  “Board” means the board of directors of the
Corporation.

 

(b)                                 “CBCA” means the Colorado Business Corporations Act.

 

(c)                                  “Code” means the United States Internal
Revenue Code of 1986, as amended. Reference in the Plan to any Section of
the Code shall be deemed to include any amendments or successor provisions to
such Section and any regulations under such Section.

 

(d)                                 “Common Shares” means the shares of common
stock of the Corporation.

 

(e)                                  “Corporate Change” means one of the
following events:

 

(i)                                     the merger,
arrangement, amalgamation, share exchange or other business combination
involving the Corporation in which the outstanding Common Shares are converted
into or exchanged for a different class of securities of the Corporation, a
class of securities of any other issuer (except a Subsidiary of the
Corporation), cash or other property other than a merger, arrangement,
amalgamation, share exchange or other business combination involving the
Corporation which would result in the voting shares of the Corporation
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least sixty percent (60%) of the combined voting power of
the voting shares of the Corporation or such surviving entity outstanding
immediately after such merger, arrangement, amalgamation, share exchange or
other business combination involving the Corporation;

 

(ii)                                  the sale, lease
or exchange of all or substantially all of the assets of the Corporation to any
other corporation or entity (except a Subsidiary of the Corporation);

 

A-1

 

(iii)                               the adoption by
the shareholders of the Corporation of a resolution to liquidate or dissolve
the Corporation;

 

(iv)                              the acquisition
(other than acquisition pursuant to any other clause of this definition) by any
person or group of persons, of beneficial ownership of more than fifty percent
(50%) (based on voting power) of the Corporation’s outstanding Common Shares;
or

 

(v)                                 as a result of
or in connection with a contested election of directors, the persons who were
directors of the Corporation before such election shall cease to constitute a
majority of the Board.

 

(f)                                    “Eligible Recipient” means any Employees,
Directors and Consultants (as defined in Policy 4.4 of the TSX-V, as the
same may be amended from time to time) of the Corporation or its Subsidiaries.

 

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

 

(h)                                 “Fair Market Value” means, as of any
specified date, the closing price of the Common Shares on the TSX-V (or, if the
Common Shares are not listed on such exchange, such other stock exchange on
which the Common Shares are then listed or quoted) on the trading day
immediately preceding that date, or if no prices are reported on that date, on
the last preceding date on which such prices of the Common Shares are so
reported. If the Common Shares are not then listed on any stock exchange but is
traded over the counter at the time determination of Fair Market Value is required
to be made hereunder, the Fair Market Value shall be deemed to be equal to the
average between the reported high and low sales prices of Common Shares on the
last preceding date on which Common Shares were publicly traded. If the Common
Shares are not publicly traded at the time a determination of its value is
required to be made hereunder, the determination of Fair Market Value shall be
made by the Board in such manner as it deems appropriate (in the case of
Incentive Stock Options, such determination will be made in good-faith as
required by Section 422(c)(1) of the Code and may be based on the
advice of an independent investment banker or appraiser recognized to be expert
in making such valuations).

 

(i)                                     “Incentive Stock Option” means an Option within
the meaning of Section 422 of the Code.

 

(j)                                     “Option” means an option granted under Section 7
of the Plan and includes both Incentive Stock Options to purchase Common Shares
and Options which do not constitute Incentive Stock Options to purchase Common
Shares.

 

(k)                                  “Option Agreement” means a written agreement
between the Corporation and an Optionee with respect to an Option.

 

(l)                                     “Optionee” means an Eligible Recipient who
has been granted an Option.

 

(m)                               “Plan” means this Stock Option Plan.

 

(n)                                 “Rule 16b-3” means Rule 16b-3 of
the General Rules and Regulations of the Securities and Exchange
Commission under the Exchange Act, as such rule is currently in effect or
as hereafter modified or amended.

 

(o)                                 “Subsidiary” has the meaning ascribed
thereto by the Securities Act
(Ontario), except that solely with respect to the issuance of Incentive Stock
Options, the term “Subsidiary” shall have the same meaning as the term “subsidiary
corporation” as defined in Section 424(f) of the Code.

 

(p)                                 “TSX-V” means the TSX Venture Exchange.

 

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SECTION 3

LIMITATIONS

 

3.1                                 If the Common
Shares are listed on the TSX-V, the following limitations shall apply:

 

(a)                                  Options for the
purchase of no more than 5% of the issued and outstanding Common Shares,
determined at the date that an Option is granted, may be granted in the
aggregate to any one individual in any twelve month period;

 

(b)                                 Options for the
purchase of no more than 2% of the issued and outstanding Common Shares, determined
at the date that an Option is granted, may be granted in the aggregate to any
one Consultant (as defined in Policy 4.4 of the TSX-V, as the same may be
amended from time to time) in any twelve month period; and

 

(c)                                  Options for the
purchase of no more than 2% of the issued and outstanding Common Shares
determined at the date that an Option is granted, may be granted in the
aggregate to a person providing Investor Relations Activities (as defined in
Policy 4.4 of the TSX-V, as the same may be amended from time to time) in
any twelve month period.

 

3.2                                 If the Common
Shares are listed on the TSX-V, unless disinterested shareholder approval of
the Plan is obtained as required by the TSX-V:

 

(a)                                  the number of
Common Shares reserved for issuance under Options granted to Insiders (as
defined in Policy 4.4 of the TSX-V, as the same may be amended from time
to time) shall not in the aggregate exceed 10% of the issued and outstanding
Common Shares, determined at the date that an Option is granted; and

 

(b)                                 the Corporation
shall not grant to Insiders (as defined in Policy 4.4 of the TSX-V, as the
same may be amended from time to time), within a twelve month period, Options
for the purchase of Common Shares exceeding in the aggregate 10% of the issued
and outstanding Common Shares, determined at the date that an Option is
granted.

 

SECTION 4

ADMINISTRATION

 

4.1                                 Administration
of Plan by Board.  The Plan
shall be administered by the Board or by a committee (“Committee”) of the Board established by the
Board for that purpose.

 

4.2                                 Powers.  Subject to the terms of the Plan and the
rules, regulations and policies of the stock exchange on which the Common
Shares may be listed or quoted, the Board or Committee shall have the power:

 

(a)                                  to determine
those Eligible Recipients that should be granted an Option;

 

(b)                                 to determine
when such Option should be granted;

 

(c)                                  to determine
the type of Option grant (Incentive Stock Options or Options that do not
constitute Incentive Stock Options);

 

(d)                                 to determine
the number of Options that should be granted and the exercise price of Common
Shares; and

 

(e)                                  the exercise
period and vesting provisions applicable to Options granted.

 

In making such
determinations, the Board may take into account the nature of the services
rendered by these individuals, their present and potential contribution to the
success of the Corporation or a Subsidiary of the Corporation, and such other
factors as the Board in its discretion shall deem relevant. If the Common
Shares are listed on the TSX-V, for Options to 

 

A-3

 

Employees, Consultants and
Management Company Employees (as each such term is defined in Policy 4.4
of the TSX-V, as the same may be amended from time to time), the Corporation
must represent that the Optionee is a bona fide Employee, Consultant or
Management Company Employee, as the case may be.

 

4.3                                 Additional
Powers.  The Board shall have such
additional powers as are delegated to it by the other provisions of the Plan.
Subject to the express provisions of the Plan, the Board is authorized in its
sole discretion, to construe and interpret the Plan and the respective
agreements executed thereunder, to prescribe such rules and regulations
relating to the Plan as it may deem advisable to carry out the Plan, and to
determine the terms, restrictions and provisions of each Option grant,
including such terms, restrictions and provisions as shall be requisite in the
judgment of the Board to cause designated Options to qualify as Incentive Stock
Options, and to make all other determinations necessary or advisable for
administering the Plan. The Board may correct any defect or supply any omission
or reconcile any inconsistency in any agreement relating to an Option grant in
the manner and to the extent it shall deem expedient to carry it into effect.
The determination of the Board on the matters referred to in this Section 4
shall be conclusive.

 

4.4                                 Compliance
with Law.  Any Option
granted under the Plan shall be subject to the requirement that, if at any time
counsel to the Corporation shall determine that the listing, registration or
qualification of the Common Shares subject to such Option upon any stock
exchange or under any law or regulation of any jurisdiction, or the consent or
approval of any stock exchange or any governmental or regulatory body, is
necessary as a condition of, or in connection with, the grant or exercise of
such Option or the issuance or purchase of Common Shares thereunder, such
Option may not be accepted or exercised in whole or in part unless such
listing, registration, qualification, consent or approval shall have been
effected or obtained on conditions acceptable to the Board or the Committee.
Nothing herein shall be deemed to require the Corporation to apply for or to
obtain such listing, registration, qualification, consent or approval.

 

Without limiting the
generality of the foregoing, unless a registration statement relating to the
Common Shares covered by an Option issued in favour of an Optionee resident in
the United States of America has been filed with the United States Securities
and Exchange Commission and is effective on the date of exercise, the exercise
of the Option by such Optionee will be contingent upon receipt from the
Optionee of a representation in writing satisfactory to the Corporation that at
the time of such exercise it is the Optionee’s then intention to acquire the
Common Shares being purchased for investment and not for resale or other
distribution thereof to the public in the United States of America.

 

The Corporation may in its
discretion inscribe a legend on any share certificates issued pursuant to the
exercise of an Option. The issuance of Common Shares upon the exercise of the
Option shall be subject to all applicable laws, rules and regulations and
Common Shares shall not be issued except upon the approval of proper government
agencies or stock exchanges as may be required. Provided, however, the Option
shall not be exercisable if at any date of exercise, it is the opinion of
counsel for the Corporation that registration of the said Common Shares under
the Securities Act of 1933 or other applicable statute or regulation is
required and the Option shall again become exercisable only if the Corporation
elects to and thereafter effects a registration of the Common Shares subject to
the Option under the Securities Act of 1933 or other applicable statute or
regulation within the relevant period. If the Option may not be exercised, the
Corporation shall return to the Optionee, without interest or deduction, any
funds received by it in connection with the proposed exercise of the Option.

 

4.5                                 Compliance
With Code §162(m).  In the event
the Corporation or a Subsidiary of the Corporation becomes a “publicly-held
corporation” as defined in Section 162(m)(2) of the Code, the

 

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Corporation may establish a
committee of outside directors meeting the requirements of Code §162(m) to
(i) approve the grant of Options which might reasonably be anticipated to
result in the payment of employee remuneration that would otherwise exceed the
limit on employee remuneration deductible for income tax purposes by the
Corporation pursuant to Code §162(m) and (ii) administer the Plan. In
such event, the powers reserved to the Board in the Plan shall be exercised by
such committee. In addition, Options under the Plan shall be granted only upon
satisfaction of the conditions to such grants provided pursuant to Code §162(m) and
any Treasury Regulations promulgated thereunder.

 

SECTION 5

SHARES SUBJECT TO THE PLAN

 

5.1                                 Limits to
Number of Common Shares.  The
total number of Common Shares reserved for issuance under this Plan shall not
exceed 5,379,000. The Corporation shall at all times reserve a sufficient
number of Common Shares to meet the requirements of the Plan. Shares shall be
deemed to have been issued under the Plan only to the extent actually issued
and delivered pursuant to exercise of an Option. To the extent that an Option
expires unexercised or is cancelled, any Common Shares subject to such Option
shall again be available for the grant of an Option. The aggregate number of
Common Shares which may be issued under the Plan shall be subject to adjustment
in the same manner as provided in Section 8 of the Plan with respect to
Common Shares subject to Options then outstanding.

 

SECTION 6

INCENTIVE STOCK OPTION ELIGIBILITY

 

6.1                                 An Incentive
Stock Option granted pursuant to the Plan may be granted only to an individual
who, at the time of grant, is an employee (within the meaning of the Code) of
the Corporation or a Subsidiary of the Corporation.

 

6.2                                 No Incentive
Stock Option may be granted hereunder more than 5 years from the date the
Plan is adopted by the Board without further shareholder approval as required
by the Code.

 

SECTION 7

STOCK OPTIONS/GRANTS

 

7.1                                 Stock
Option Agreement.  Each Option
shall be evidenced by an Option Agreement executed by the Corporation which
shall contain such terms and conditions not inconsistent with the terms of the
Plan as may be approved by the Board.

 

7.2                                 Option
Period.  Options shall not be granted
for a term exceeding five years.

 

7.3                                 Vesting of
Options.  Options
granted hereunder shall vest at such times and under such conditions as
determined by the Board or Committee, as applicable, provided that if the
Common Shares are listed on the TSX-V, the Options shall vest no earlier than
25% on the date of grant, 25% on that date which is six months from the date of
grant, 25% on that date which is twelve months from the date of grant and 25%
on that date which is eighteen months from the date of grant. An Option may not
be exercised for fractional shares.

 

7.4                                 Special
Limitations on Incentive Stock Options.  To the extent that the aggregate Fair Market
Value (determined at the time the respective Incentive Stock Option is granted)
of Common Shares with respect to which Incentive Stock Options are exercisable
for the first time by an individual during any calendar year under the Plan and
any other plan adopted by the Corporation (and any Subsidiary of the Corporation)
exceeds One Hundred Thousand U.S. Dollars (U.S.$100,000) (within the meaning of
Section 422 of the Code), such excess Incentive Stock 

 

A-5

 

Options shall be treated as
Options which do not constitute Incentive Stock Options. The Board shall
determine, in accordance with applicable provisions of the Code, Treasury
Regulations and other administrative pronouncements, which of an Optionee’s
Incentive Stock Options will not constitute Incentive Stock Options because of
such limitation and shall notify the Optionee of such determination as soon as
practicable after such determination. No Incentive Stock Option shall be
granted to an individual if, at the time the Option is granted, such individual
owns shares to which are attached more than ten percent (10%) of the total
combined voting power of all classes of shares of the Corporation or of a
Subsidiary of the Corporation, within the meaning of Section 422(b)(6) of
the Code, unless (i) at the time such Option is granted the Option price
is at least one hundred ten percent (110%) of the Fair Market Value of the
Common Shares subject to the Option and (ii) such Option by its terms is
not exercisable after the expiration of five years from the date of grant.

 

7.5                                 Option
Price.  The exercise price of Common
Shares issued under each Option shall be determined by the Board and shall in
no event be less than the Fair Market Value of Common Shares subject to the
Option on the date the Option is granted, except that for Incentive Stock
Options, the price shall be one hundred ten percent (110%) of the Fair Market
Value in the case of any person or entity who owns shares to which are attached
more than ten percent (10%) of the total combined voting power of all classes
of shares of the Corporation or of a Subsidiary of the Corporation.

 

7.6                                 Options and
Rights in Substitution for Stock Options Made by Other Corporations.  Options may be granted under the Plan from
time to time in substitution for stock options held by employees of
corporations who become, or who became prior to the effective date of the Plan,
employees of the Corporation or of any Subsidiary of the Corporation as a
result of a merger or consolidation of the employing corporation with the
Corporation or such Subsidiary of the Corporation, or the acquisition by the
Corporation or a Subsidiary of the Corporation of all or a portion of the
assets of the employing corporation, or the acquisition by the Corporation or a
Subsidiary of the Corporation of shares of the employing corporation with the
result that such employing corporation becomes a Subsidiary of the Corporation.

 

SECTION 8

ADJUSTMENTS IN THE EVENT OF CERTAIN CHANGES  IN CAPITAL STRUCTURE

 

8.1                                 The aggregate
number and kind of shares available under the Plan and the exercise price
therefor shall be subject to adjustment by the Board in the event of a
reclassification, recapitalization, stock split, stock dividend, merger,
consolidation, combination or other change in the corporate structure of the Corporation
occurring after the date of grant of any Options.

 

In the event of a Corporate
Change, the Board shall either at the time Options are granted, or at any time
thereafter, have the authority to take such actions as it deems advisable,
including, without limitation (a) the right to accelerate in whole or in
part the exercisability of Options, (b) to require the mandatory surrender
of outstanding Options in exchange for cash for the bargain element the
Optionee would have realized upon the occurrence of the Corporate Change, if
any, or (c) provide that upon exercise of the Option, the Optionee will be
entitled to purchase other securities or property. Nothing herein shall
obligate the Board to take any action upon a Corporate Change.

 

8.2                                 The existence of
the Plan and the Option grants made hereunder shall not affect in any way the
right or power of the Board or the shareholders of the Corporation to make or
authorize any adjustment, reorganization or other change in the capital
structure of the Corporation or a Subsidiary of the Corporation or their
business, any merger or consolidation of the Corporation or 

 

A-6

 

a Subsidiary of the
Corporation, any issue of debt or equity securities having any priority or
preference with respect to or affecting Common Shares or the rights thereof,
the dissolution or liquidation of the Corporation or a Subsidiary of the
Corporation, or any sale, lease, exchange or other disposition of all or any
part of their assets or business or any other corporate act or proceeding.

 

SECTION 9

AMENDMENT OR TERMINATION OF THE PLAN

 

9.1                                 The Board may
at any time, subject, if the Common Shares are listed on the TSX-V, to the
approval of the TSX-V, and the rules, regulations and policies of such other
stock exchange on which the Common Shares may be listed or quoted, amend,
suspend or terminate this Plan, or any portion thereof, provided that no change
in any Option grant previously made may be made which would impair the rights
of the Optionee thereunder without the consent of the affected Optionee.

 

SECTION 10

OTHER

 

10.1                           No Right to
an Option.  Neither the
adoption of the Plan nor any action of the Board or Committee shall be deemed
to give an employee any right to be granted an Option to purchase Common Shares
or to any other rights hereunder except as expressly approved by the Board or
Committee.

 

10.2                           No
Employment Rights Conferred.  Nothing contained in the Plan or in any
Option made hereunder shall (i) confer upon any employee any right with
respect to continuation of employment with the Corporation or Subsidiary of the
Corporation, or (ii) interfere in any way with the right of the
Corporation or Subsidiary of the Corporation to terminate his or her employment
at any time.

 

10.3                           Other Laws;
Withholding.  The
Corporation shall not be obligated to issue any Common Shares pursuant to any
Option made under the Plan at any time if, in the opinion of legal counsel for
the Corporation, there is no exemption from the prospectus or registration requirements
of applicable laws, rules or regulations available for the issuance and
sale of such shares. No fractional Common Shares shall be delivered, nor shall
any cash in lieu of fractional shares be paid. The Corporation shall have the
right to deduct in connection with an Option any taxes required by law to be
withheld and to require any payments necessary to enable it to satisfy its
withholding obligations. The Board may permit the holder of an Option to elect
to surrender, or authorize the Corporation to withhold Common Shares (valued at
their Fair Market Value on the date of surrender or withholding of such shares)
in satisfaction of the Corporation’s withholding obligation, subject to such
restrictions as the Board deems necessary to satisfy the requirements of Rule 16b-3.

 

10.4                           No
Restriction of Corporate Action.  Nothing contained in the Plan shall be
construed to prevent the Corporation or Subsidiary of the Corporation from
taking any corporate action which is deemed by the Corporation or Subsidiary of
the Corporation to be appropriate or in its best interest, whether or not such
action would have an adverse effect on the Plan or any Option granted under the
Plan. No employee, beneficiary or other person shall have any claim against the
Corporation or Subsidiary of the Corporation as a result of such action.

 

10.5                           Restrictions
on Transfer and Assignment.  An Option shall not be transferable or
assignable otherwise than by will or the laws of descent and distribution and
shall be exercisable during the lifetime of the Optionee only by such Optionee
or the Optionee’s guardian or legal representative.

 

10.6                           Effect of
Termination of Employment or Death.  Subject to the immediately following
paragraph, if any Optionee who is a service provider shall cease to be a
service provider for the Corporation 

 

A-7

 

or a Subsidiary of the
Corporation for any reason (whether or not for cause), the Optionee may, but
only within a period of ninety days following such cessation, but in no event
after the expiry of the Optionee’s Option, exercise the Optionee’s Option.
Notwithstanding the foregoing, if the Common Shares are listed on the TSX-V and
if an Optionee engaged in Investor Relations Activities (as defined in Policy 4.4
of the TSX-V, as the same may be amended from time to time) ceases to be a
service provider for the Corporation or a Subsidiary of the Corporation, the
Optionee may, but only within a period of thirty days following such cessation,
but in no event after the expiry of the Optionee’s Option, exercise the
Optionee’s Option. For the purposes of the Plan, the date on which a service
provider ceases to be a service provider shall be deemed to be the date notice
of termination is actually given, without regard to any notice period
applicable under contract or at law.

 

In the event of the death of
an Optionee during the currency of the Optionee’s Option, the Option
theretofore granted to the Optionee shall be exercisable within, but only
within, the period of one year following the Optionee’s death, but in no event
after the expiry of the Optionee’s death.

 

10.7                           Rule 16b-3.  It is intended that the Plan and any grant of
an Option made to a person subject to Section 16 of the Exchange Act meet
all of the requirements of Rule 16b-3. If any provisions of the Plan or
any such Option would disqualify the Plan or such Option hereunder, or would
otherwise not comply with Rule 16b-3, such provision or Option shall be
construed or deemed amended to conform to Rule 16b 3.

 

10.8                           Governing
Law.  The Plan shall by construed in
accordance with the laws of the State of Colorado without regard to principles
of conflicts of laws.

 

ADOPTED BY THE BOARD OF DIRECTORS OF BE
RESOURCES INC. AS OF DECEMBER 7, 2007 AND APPROVED BY THE SHAREHOLDERS
OF BE RESOURCES INC. AS OF DECEMBER    
, 2007.

 

A-8

 

EXHIBIT B

 

BE RESOURCES INC.

 

NOTICE AND AGREEMENT OF EXERCISE OF OPTION

 

I hereby exercise my Option
(as set forth in the Stock Option Agreement) to acquire shares of BE
Resources Inc. as to                 
shares of BE Resources Inc. Common Stock (the “Option Shares”).

 

Enclosed is the payment
required to exercise my Option.

 

I understand that no Option
Shares will be issued unless and until, in the opinion of BE
Resources Inc. (the “Corporation”), any applicable registration
requirements of the United States Securities Act of 1933, as amended, and any
applicable listing requirements of any securities exchange on which stock of
the same class is then listed, and any other requirements of law or any
regulatory bodies having jurisdiction over such issuance and delivery, shall
have been fully complied with. I hereby acknowledge, represent, warrant and
agree, to and with the Corporation as follows:

 

a.                                       The Option
Shares I am purchasing are being acquired for my own account for investment
purposes only and no other person (except, if I am married, my spouse) will own
any interest therein.

 

b.                                      I will not sell
or dispose of my Option Shares in violation of the Securities Act of 1933, as
amended, or any other applicable securities law.

 

c.                                       I will report
all sales of Option Shares to the Corporation in writing on a form prescribed
by the Corporation.

 

d.                                      I understand
that the Corporation may be required to pay withholding tax to government
taxing authorities on the exercise of my Option, and that if required, I will
pay the amount of any withholding tax to the Corporation along with the
exercise price of the Option.

 

e.                                       I agree that
the Corporation may, without liability for its good faith actions, place legend
restrictions upon any certificates representing my Option Shares and issue “stop
transfer” instructions requiring compliance with applicable securities laws and
the terms of my Stock Option Agreement, if required by applicable law.

 

f.                                         I may be
required to execute and deliver to the Corporation certain documents that may
be required under the laws of Canada, the United States, state blue sky laws,
or by other securities laws, regulations or appropriate regulatory agencies.

 

The
number of Option Shares specified above are to be issued in the following
registration:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Print Your Full Name)

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Optional—Print Full Name 

  of Spouse if you wish joint 

  registration.)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address

  

 

B-1Exhibit 10.22

 

FIRST AMENDMENT TO NPR ROYALTY
AGREEMENT

 

THIS FIRST AMENDMENT TO NPR
ROYALTY AGREEMENT made as of the 27th day of May, 2009

 

BETWEEN:

 

SOUTH WEST
EXPLORATION, LLC, a limited liability company under the laws
of Colorado (hereinafter referred to as the “Royaltyholder”)

 

- and -

 

BE
RESOURCES INC., a company incorporated under the laws of Colorado
(hereinafter referred to as the “Royaltypayor”)

 

WHEREAS the Royaltyholder and Royaltypayor
entered into an NPR Royalty Agreement on October 1, 2007;

 

AND WHEREAS subsequent to October 1,
2007, the Royaltypayor has endeavoured to complete an initial public offering
of its common stock in order to raise funds to, among other things, further
explore the real property subject to the NPR Royalty Agreement;

 

AND WHEREAS the Royaltypayor has been advised
in discussions with investment bankers that it is necessary and desirable to
reduce the royalty payable to the Royaltyholder pursuant to the NPR Royalty
Agreement (“Royalty”) in order to
successfully market and complete its initial public offering;

 

AND WHEREAS in consideration of the
Royaltypayor’s continued and future payment of its legal, accounting, and other
professional service fees which the Royaltypayor shall incur in its continued
pursuit of its initial public offering, and other good and valuable
consideration, the parties desire to reduce the Royalty and hereby agree as
follows:

 

1.                                       ARTICLE 1, OBLIGATION, paragraph 1.2(b) of
the NPR Royalty Agreement shall be deleted and replaced with the following:

 

(b)                                 Pay or cause to
be paid to the Royaltyholder that amount equal to .34% of the Net Profits, if
any.

 

2.                                       All other terms
and conditions and provisions of the NPR Royalty Agreement shall remain the
same.

 

 

IN WITNESS WHEREOF the
parties have duly executed and delivered this First Amendment to NPR Royalty
Agreement effective as of the date first above written.

 

	
   

  	
  ROYALTYHOLDER:

  
	
   

  	
   

  
	
   

  	
  SOUTH WEST EXPLORATION, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Robert A. Lufkin

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  ROYALTYPAYOR:

  
	
   

  	
   

  
	
   

  	
  BE RESOURCES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ David Tognoni

  
	
   

  	
   

  	
  Authorized Signatory

  

 

2

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