Document:

Left Behind Games Inc. 2006 Stock Incentive Plan

     

    Exhibit
      10.1

     

    LEFT
      BEHIND GAMES INC.

     

    2006
      STOCK INCENTIVE PLAN

     

    SECTION
      1. General Purpose of the Plan; Definitions. 

     

    The
      name
      of the plan is the LEFT BEHIND GAMES INC. 2006 STOCK INCENTIVE PLAN (the
      "Plan"). The purpose of the Plan is to encourage and enable officers, directors,
      and employees of Left Behind Games Inc. (the "Company") and its Subsidiaries
      and
      other persons to acquire a proprietary interest in the Company. It is
      anticipated that providing such persons with a direct stake in the Company's
      welfare will assure a closer identification of their interests with those of
      the
      Company and its shareholders, thereby stimulating their efforts on the Company's
      behalf and strengthening their desire to remain with the Company. 

     

    The
      following terms shall be defined as set forth below: 

     

    "Award"
      or "Awards", except where referring to a particular category of grant under
      the
      Plan, shall include Incentive Stock Options, Non-Statutory Stock Options,
      Restricted Stock Awards, Unrestricted Stock Awards, Performance Share Awards
      and
      Stock Appreciation Rights. 

     

    "Board"
      means the Board of Directors of the Company. 

     

    "Cause"
      means (i) any material breach by the participant of any agreement to which
      the
      participant and the Company are both parties, and (ii) any act or omission
      justifying termination of the participant's employment for cause, as determined
      by the Committee. 

     

    "Change
      of Control" shall have the meaning set forth in Section 15. 

     

    "Code"
      means the Internal Revenue Code of 1986, as amended, and any successor Code,
      and
      related rules, regulations and interpretations. 

     

    "Conditioned
      Stock Award" means an Award granted pursuant to Section 6. 

     

    "Committee"
      shall have the meaning set forth in Section 2. 

     

    "Disability"
      means disability as set forth in Section 22(e)(3) of the Code. 

     

    "Effective
      Date" means the date on which the Plan is approved by stockholders as set forth
      in Section 17. 

     

    "Eligible
      Person" shall have the meaning set forth in Section 4. 

     

    "Fair
      Market Value" on any given date means the price per share of the Stock on such
      date as reported by a nationally recognized stock exchange, or, if the Stock
      is
      not listed on such an exchange, as reported by NASDAQ, or, if the Stock is
      not
      quoted on NASDAQ, the fair market value of the Stock as determined by the
      Committee. 

     

    
      
         

      

      
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    "Incentive
      Stock Option" means any Stock Option designated and qualified as an "incentive
      stock option" as defined in Section 422 of the Code. 

     

    "Non-Statutory
      Stock Option" means any Stock Option that is not an Incentive Stock Option.
      

     

    "Normal
      Retirement" means retirement from active employment with the Company and its
      Subsidiaries in accordance with the retirement policies of the Company and
      its
      Subsidiaries then in effect. 

     

    "Outside
      Director" means any director who (i) is not an employee of the Company or of
      any
      "affiliated group," as such term is defined in Section 1504(a) of the Code,
      which includes the Company (an "Affiliate"), (ii) is not a former employee
      of
      the Company or any Affiliate who is receiving compensation for prior services
      (other than benefits under a tax-qualified retirement plan) during the Company's
      or any Affiliate's taxable year, (iii) has not been an officer of the Company
      or
      any Affiliate and (iv) does not receive remuneration from the Company or any
      Affiliate, either directly or indirectly, in any capacity other than as a
      director. "Outside Director" shall be determined in accordance with Section
      162(m) of the Code and the Treasury regulations issued thereunder. 

     

    "Option"
      or "Stock Option" means any option to purchase shares of Stock granted pursuant
      to Section 5. 

     

    "Performance
      Share Award" means an Award granted pursuant to Section 8. 

     

    "Stock"
      means the Common Stock, no par value, of the Company, subject to adjustments
      pursuant to Section 3. 

     

    "Stock
      Appreciation Right" means an Award granted pursuant to Section 9. 

     

    "Subsidiary"
      means a subsidiary as defined in Section 424 of the Code. 

     

    "Unrestricted
      Stock Award" means Awards granted pursuant to Section 7. 

     

    SECTION
      2. Administration of Plan; Committee Authority to Select Participants and
      Determine Awards.

     

    (a)
      Committee. The Plan shall be administered by either by (i) a committee of the
      Board consisting of not less than two Directors (the "Committee"), or (ii)
      in
      the absence of a committee, the Board of Directors may act as the Committee
      at
      any time . Except as specifically reserved to the Board under the terms of
      the
      Plan, the Committee shall have full and final authority to operate, manage
      and
      administer the Plan on behalf of the Company. Action by the Committee shall
      require the affirmative vote of a majority of all members thereof. The Board
      may
      establish an additional single-member committee (consisting of an executive
      officer) that shall have the power and authority to grant Awards to
      non-executive officers and to make all other determinations under the Plan
      with
      respect thereto. 

     

    
      
         

      

      
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    (b)
      Powers of Committee. The Committee shall have the power and authority to grant
      and modify Awards consistent with the terms of the Plan, including the power
      and
      authority: 

     

    (i)
      to
      select the persons to whom Awards may from time to time be granted;

     

    (ii)
      to
      determine the time or times of grant, and the extent, if any, of Incentive
      Stock
      Options, Non-Statutory Stock Options, Restricted Stock, Unrestricted Stock,
      Performance Shares and Stock Appreciation Rights, or any combination of the
      foregoing, granted to any one or more participants; 

     

    (iii)
      to
      determine the number of shares to be covered by any Award; 

     

    (iv)
      to
      determine and modify the terms and conditions, including restrictions, not
      inconsistent with the terms of the Plan, of any Award, which terms and
      conditions may differ among individual Awards and participants, and to approve
      the form of written instruments evidencing the Awards; provided, however, that
      no such action shall adversely affect rights under any outstanding Award without
      the participant's consent; 

     

    (v)
      to
      accelerate the exercisability or vesting of all or any portion of any Award;
      

     

    (vi)
      subject to the provisions of Section 5(b), to extend the period in which any
      outstanding Stock Option or Stock Appreciation Right may be exercised;

     

    (vii)
      to
      determine whether, to what extent, and under what circumstances Stock and other
      amounts payable with respect to an Award shall be deferred either automatically
      or at the election of the participant and whether and to what extent the Company
      shall pay or credit amounts equal to interest (at rates determined by the
      Committee) or dividends or deemed dividends on such deferrals; and 

     

    (viii)
      to
      adopt, alter and repeal such rules, guidelines and practices for administration
      of the Plan and for its own acts and proceedings as it shall deem advisable;
      to
      interpret the terms and provisions of the Plan and any Award (including related
      written instruments); to make all determinations it deems advisable for the
      administration of the Plan; to decide all disputes arising in connection with
      the Plan; and to otherwise supervise the administration of the Plan.

     

    All
      decisions and interpretations of the Committee shall be binding on all persons,
      including the Company and Plan participants. 

     

     

    
      
         

      

      
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    SECTION
      3. Shares Issuable under the Plan; Mergers; Substitution. 

     

    (a)
      Shares Issuable. The maximum number of shares of Stock with respect to which
      Awards (including Stock Appreciation Rights) may be granted under the Plan
      shall
      be five million shares (5,000,000); such number to supplement, and not to
      replace, any prior plans authorized by the Corporation's board of directors.
      For
      purposes of this limitation, the shares of Stock underlying any Awards which
      are
      forfeited, cancelled, reacquired by the Company or otherwise terminated (other
      than by exercise) shall be added back to the shares of Stock with respect to
      which Awards may be granted under the Plan so long as the participants to whom
      such Awards had been previously granted received no benefits of ownership of
      the
      underlying shares of Stock to which the Award related. Subject to such overall
      limitation, any type or types of Award may be granted with respect to shares,
      including Incentive Stock Options. Shares issued under the Plan may be
      authorized but unissued shares or shares reacquired by the Company.

     

    (b)
      Stock
      Dividends, Mergers, etc. In the event that after approval of the Plan by the
      directors of the Company in accordance with Section 17, the Company effects
      a
      stock dividend, stock split or similar change in capitalization affecting the
      Stock, the Committee shall make appropriate adjustments in (i) the number and
      kind of shares of stock or securities with respect to which Awards may
      thereafter be granted (including without limitation the limitations set forth
      in
      Section 3(a) and Section 3(b) above), (ii) the number and kind of shares
      remaining subject to outstanding Awards, and (iii) the option or purchase price
      in respect of such shares. In the event of any merger, consolidation,
      dissolution or liquidation of the Company, the Committee in its sole discretion
      may, as to any outstanding Awards, make such substitution or adjustment in
      the
      aggregate number of shares reserved for issuance under the Plan and in the
      number and purchase price (if any) of shares subject to such Awards as it may
      determine and as may be permitted by the terms of such transaction, or
      accelerate, amend or terminate such Awards upon such terms and conditions as
      it
      shall provide (which, in the case of the termination of the vested portion
      of
      any Award, shall require payment or other consideration which the Committee
      deems equitable in the circumstances), subject, however, to the provisions
      of
      Section 15. 

     

    (c)
      Substitute Awards. The Committee may grant Awards under the Plan in substitution
      for stock and stock based awards held by employees of another Corporation who
      concurrently become employees of the Company or a Subsidiary as the result
      of a
      merger or consolidation of the employing Corporation with the Company or a
      Subsidiary or the acquisition by the Company or a Subsidiary of property or
      stock of the employing Corporation. The Committee may direct that the substitute
      awards be granted on such terms and conditions as the Committee considers
      appropriate in the circumstances. Shares which may be delivered under such
      substitute awards may be in addition to the maximum number of shares provided
      for in Section 3(a). 

     

    SECTION
      4. Eligibility. 

     

    Awards
      may be granted to officers, directors, and employees of and consultants and
      advisers to the Company or its Subsidiaries ("Eligible Persons"). 

     

     

    
      
         

      

      
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    SECTION
      5. Stock Options. 

     

    The
      Committee may grant to Eligible Persons options to purchase stock. 

     

    Any
      Stock
      Option granted under the Plan shall be in such form as the Committee may from
      time to time approve. 

     

    Stock
      Options granted under the Plan may be either Incentive Stock Options (subject
      to
      compliance with applicable law) or Non-Statutory Stock Options. Unless otherwise
      so designated, an Option shall be a Non-Statutory Stock Option. To the extent
      that any option does not qualify as an Incentive Stock Option, it shall
      constitute a Non-Statutory Stock Option. 

     

    No
      Incentive Stock Option shall be granted under the Plan after the tenth
      anniversary of the earlier of (i) the date of adoption of the Plan by the Board,
      or (ii) the date on which the Plan is ratified by the stockholders as set forth
      in Section 17. 

     

    The
      Committee in its discretion may determine the effective date of Stock Options,
      provided, however, that grants of Incentive Stock Options shall be made only
      to
      persons who are, on the effective date of the grant, employees of the Company
      or
      any Subsidiary. Stock Options granted pursuant to this Section 5(a) shall be
      subject to the following terms and conditions and the terms and conditions
      of
      Section 13 and shall contain such additional terms and conditions, not
      inconsistent with the terms of the Plan, as the Committee shall deem desirable.
      

     

    (a)
      Exercise Price. The exercise price per share for the Stock covered by a Stock
      Option granted pursuant to this Section 5(a) shall be determined by the
      Committee at the time of grant but shall be, in the case of Incentive Stock
      Options, not less than one hundred percent (100%) of Fair Market Value on the
      date of grant. If an employee owns or is deemed to own (by reason of the
      attribution rules applicable under Section 424(d) of the Code) more than ten
      percent (10%) of the combined voting power of all classes of stock of the
      Company or any Subsidiary or parent Corporation and an Incentive Stock Option
      is
      granted to such employee, the option price shall be not less than one hundred
      ten percent (110%) of Fair Market Value on the grant date. 

     

    (b)
      Option Term. The term of each Stock Option shall be fixed by the Committee,
      but
      no Incentive Stock Option shall be exercisable more than ten (10) years after
      the date the option is granted. If an employee owns or is deemed to own (by
      reason of the attribution rules of Section 424(d) of the Code) more than ten
      percent (10%) of the combined voting power of all classes of stock of the
      Company or any Subsidiary or parent Corporation and an Incentive Stock Option
      is
      granted to such employee, the term of such option shall be no more than five
      (5)
      years from the date of grant. 

     

    (c)
      Exercisability; Rights of a Shareholder. Stock Options shall become vested
      and
      exercisable at such time or times, whether or not in installments, as shall
      be
      determined by the Committee at or after the grant date. The Committee may at
      any
      time accelerate the exercisability of all or any portion of any Stock Option.
      An
      optionee shall have the rights of a shareholder only as to shares acquired
      upon
      the exercise of a Stock Option and not as to unexercised Stock Options.

     

    
      
         

      

      
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    (d)
      Method of Exercise. Stock Options may be exercised in whole or in part, by
      delivering written notice of exercise to the Company, specifying the number
      of
      shares to be purchased. Payment of the purchase price may be made by one or
      more
      of the following methods: 

     

    (i)
      In
      cash or by certified or bank check or other instrument acceptable to the
      Committee; 

     

    (ii)
      If
      permitted by the Committee, in its discretion, in the form of shares of Stock
      that are not then subject to restrictions and that have been owned by the
      optionee for a period of at least six months. Such surrendered shares shall
      be
      valued at Fair Market Value on the exercise date; or 

     

    (iii)
      By
      the optionee delivering to the Company a properly executed exercise notice
      together with irrevocable instructions to a broker to promptly deliver to the
      Company cash or a check payable and acceptable to the Company to pay the
      purchase price; provided that in the event the optionee chooses to pay the
      purchase price as so provided, the optionee and the broker shall comply with
      such procedures and enter into such agreements of indemnity and other agreements
      as the Committee shall prescribe as a condition of such payment procedure.
      The
      Company need not act upon such exercise notice until the Company receives full
      payment of the exercise price; or 

     

    (iv)
      By
      any other means (including, without limitation, by delivery of a promissory
      note
      of the optionee payable on such terms as are specified by the Committee) which
      the Committee determines are consistent with the purpose of the Plan and with
      applicable laws and regulations. 

     

    The
      delivery of certificates representing shares of Stock to be purchased pursuant
      to the exercise of a Stock Option will be contingent upon receipt from the
      Optionee (or a purchaser acting in his stead in accordance with the provisions
      of the Stock Option) by the Company of the full purchase price for such shares
      and the fulfillment of any other requirements contained in the Stock Option
      or
      imposed by applicable law. 

     

    (e)
      Non-transferability of Options. Except as the Committee may provide with respect
      to a Non-Statutory Stock Option, no Stock Option shall be transferable other
      than by will or by the laws of descent and distribution and all Stock Options
      shall be exercisable, during the optionee's lifetime, only by the optionee.
      

     

    (f)
      Annual Limit on Incentive Stock Options. To the extent required for "incentive
      stock option" treatment under Section 422 of the Code, the aggregate Fair Market
      Value (determined as of the time of grant) of the Stock with respect to which
      incentive stock options granted under this Plan and any other Plan of the
      Company or its Subsidiaries become exercisable for the first time by an optionee
      during any calendar year shall not exceed $100,000. 

     

    (g)
      Form
      of Settlement. Shares of Stock issued upon exercise of a Stock Option shall
      be
      free of all restrictions under the Plan, except as otherwise provided in this
      Plan. 

     

     

    
      
         

      

      
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    SECTION
      6. Restricted Stock Awards.

     

    (a)
      Nature of Restricted Stock Award. The Committee in its discretion may grant
      Restricted Stock Awards to any Eligible Person, entitling the recipient to
      acquire, for a purchase price determined by the Committee, shares of Stock
      subject to such restrictions and conditions as the Committee may determine
      at
      the time of grant ("Restricted Stock"), including continued employment and/or
      achievement of pre-established performance goals and objectives. 

     

    (b)
      Acceptance of Award. A participant who is granted a Restricted Stock Award
      shall
      have no rights with respect to such Award unless the participant shall have
      accepted the Award within sixty (60) days (or such shorter date as the Committee
      may specify) following the award date by making payment to the Company of the
      specified purchase price, of the shares covered by the Award and by executing
      and delivering to the Company a written instrument that sets forth the terms
      and
      conditions applicable to the Restricted Stock in such form as the Committee
      shall determine. 

     

    (c)
      Rights as a Shareholder. Upon complying with Section 6(b) above, a participant
      shall have all the rights of a shareholder with respect to the Restricted Stock,
      including voting and dividend rights, subject to non-transferability
      restrictions and Company repurchase or forfeiture rights described in this
      Section 6 and subject to such other conditions contained in the written
      instrument evidencing the Restricted Award. Unless the Committee shall otherwise
      determine, certificates evidencing shares of Restricted Stock shall remain
      in
      the possession of the Company until such shares are vested as provided in
      Section 6(e) below. 

     

    (d)
      Restrictions. Shares of Restricted Stock may not be sold, assigned, transferred,
      pledged or otherwise encumbered or disposed of except as specifically provided
      herein. In the event of termination of employment by the Company and its
      Subsidiaries for any reason (including death, Disability, Normal Retirement
      and
      for Cause), the Company shall have the right, at the discretion of the
      Committee, to repurchase shares of Restricted Stock with respect to which
      conditions have not lapsed at their purchase price, or to require forfeiture
      of
      such shares to the Company if acquired at no cost, from the participant or
      the
      participant's legal representative. The Company must exercise such right of
      repurchase or forfeiture within ninety (90) days following such termination
      of
      employment (unless otherwise specified in the written instrument evidencing
      the
      Restricted Stock Award). 

     

    (e)
      Vesting of Restricted Stock. The Committee at the time of grant shall specify
      the date or dates and/or the attainment of pre-established performance goals,
      objectives and other conditions on which the non-transferability of the
      Restricted Stock and the Company's right of repurchase or forfeiture shall
      lapse. Subsequent to such date or dates and/or the attainment of such
      preestablished performance goals, objectives and other conditions, the shares
      on
      which all restrictions have lapsed shall no longer be Restricted Stock and
      shall
      be deemed "vested." The Committee at any time may accelerate such date or dates
      and otherwise waive or, subject to Section 13, amend any conditions of the
      Award. 

     

    (f)
      Waiver, Deferral and Reinvestment of Dividends. The written instrument
      evidencing the Restricted Stock Award may require or permit the immediate
      payment, waiver, deferral or investment of dividends paid on the Restricted
      Stock. 

     

    
      
         

      

      
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    SECTION
      7. Unrestricted Stock Awards. 

     

    (a)
      Grant
      or Sale of Unrestricted Stock. The Committee in its discretion may grant or
      sell
      to any Eligible Person shares of Stock free of any restrictions under the Plan
      ("Unrestricted Stock") at a purchase price determined by the Committee. Shares
      of Unrestricted Stock may be granted or sold as described in the preceding
      sentence in respect of past services or other valid consideration. 

     

    (b)
      Restrictions on Transfers. The right to receive unrestricted Stock may not
      be
      sold, assigned, transferred, pledged or otherwise encumbered, other than by
      will
      or the laws of descent and distribution. 

     

    SECTION
      8. Performance Share Awards. 

     

    (a)
      Nature of Performance Shares. A Performance Share Award is an award entitling
      the recipient to acquire shares of Stock upon the attainment of specified
      performance goals. The Committee may make Performance Share Awards independent
      of or in connection with the granting of any other Award under the Plan.
      Performance Share Awards may be granted under the Plan to any Eligible Person.
      The Committee in its discretion shall determine whether and to whom Performance
      Share Awards shall be made, the performance goals applicable under each such
      Award, the periods during which performance is to be measured, and all other
      limitations and conditions applicable to the awarded Performance Shares.

     

    SECTION
      9. Stock Appreciation Rights. 

     

    The
      Committee in its discretion may grant Stock Appreciation Rights to any Eligible
      Person (i) alone, or (ii) simultaneously with the grant of a Stock Option and
      in
      conjunction therewith or in the alternative thereto. A Stock Appreciation Right
      shall entitle the participant upon exercise thereof to receive from the Company,
      upon written request to the Company at its principal offices (the "Request"),
      a
      number of shares of Stock (with or without restrictions as to substantial risk
      of forfeiture and transferability, as determined by the Committee in its sole
      discretion), an amount of cash, or any combination of Stock and cash, as
      specified in the Request (but subject to the approval of the Committee in its
      sole discretion, at any time up to and including the time of payment, as to
      the
      making of any cash payment), having an aggregate Fair Market Value equal to
      the
      product of (i) the excess of Fair Market Value, on the date of such Request,
      over the exercise price per share of Stock specified in such Stock Appreciation
      Right or its related Option, multiplied by (ii) the number of shares of Stock
      for which such Stock Appreciation Right shall be exercised. Notwithstanding
      the
      foregoing, the Committee may specify at the time of grant of any Stock
      Appreciation Right that such Stock Appreciation Right may be exercisable solely
      for cash and not for Stock.

     

     

    
      
         

      

      
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    SECTION
      10. Termination of Stock Options and Stock Appreciation Rights.

     

    (a)
      Incentive Stock Options: 

     

    (i)
      Termination by Death. If any participant's employment by the Company and its
      Subsidiaries terminates by reason of death, any Incentive Stock Option owned
      by
      such participant may thereafter be exercised to the extent exercisable at the
      date of death, by the legal representative or legatee of the participant, for
      a
      period of two (2) years (or such other period as the Committee shall specify
      at
      any time) from the date of death, or until the expiration of the stated term
      of
      the Incentive Stock Option, if earlier. 

     

    (ii)
      Termination by Reason of Disability or Normal Retirement. 

     

    (A)
      Any
      Incentive Stock Option held by a participant whose employment by the Company
      and
      its Subsidiaries has terminated by reason of Disability may thereafter be
      exercised, to the extent it was exercisable at the time of such termination,
      for
      a period of one (1) year (or such other period as the Committee shall specify
      at
      any time) from the date of such termination of employment, or until the
      expiration of the stated term of the Option, if earlier. 

     

    (B)
      Any
      Incentive Stock Option held by a participant whose employment by the Company
      and
      its Subsidiaries has terminated by reason of Normal Retirement may thereafter
      be
      exercised, to the extent it was exercisable at the time of such termination,
      for
      a period of ninety (90) days (or such other period as the Committee shall
      specify at any time) from the date of such termination of employment, or until
      the expiration of the stated term of the Option, if earlier. 

     

    (C)
      The
      Committee shall have sole authority and discretion to determine whether a
      participant's employment has been terminated by reason of Disability or Normal
      Retirement. 

     

    (D)
      Except as otherwise provided by the Committee at the time of grant, the death
      of
      a participant during a period provided in this Section 10(a)(ii) for the
      exercise of an Incentive Stock Option shall extend such period for two (2)
      years
      from the date of death, subject to termination on the expiration of the stated
      term of the Option, if earlier. 

     

    (iii)
      Termination for Cause. If any participant's employment by the Company and its
      Subsidiaries has been terminated for Cause, any Incentive Stock Option held
      by
      such participant shall immediately terminate and be of no further force and
      effect; provided, however, that the Committee may, in its sole discretion,
      provide that such Option can be exercised for a period of up to thirty (30)
      days
      from the date of termination of employment or until the expiration of the stated
      term of the Option, if earlier. 

     

     

    
      
         

      

      
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    (iv)
      Other Termination. Unless otherwise determined by the Committee, if a
      participant's employment by the Company and its Subsidiaries terminates for
      any
      reason other than death, Disability, Normal Retirement or for Cause, any
      Incentive Stock Option held by such participant may thereafter be exercised,
      to
      the extent it was exercisable on the date of termination of employment, for
      ninety (90) days (or such other period as the Committee shall specify at any
      time) from the date of termination of employment or until the expiration of
      the
      stated term of the Option, if earlier. 

     

    (b)
      Non-Statutory Stock Options and Stock Appreciation Rights. Any Non-Statutory
      Stock Option or Stock Appreciation Right granted under the Plan shall contain
      such terms and conditions with respect to its termination as the Committee,
      in
      its discretion, may from time to time determine. 

     

    SECTION
      11. Tax Withholding. 

     

    (a)
      Payment by Participant. Each participant shall, no later than the date as of
      which the value of an Award or of any Stock or other amounts received thereunder
      first becomes includable in the gross income of the participant for Federal
      income tax purposes, pay to the Company, or make arrangements satisfactory
      to
      the Committee regarding payment of any Federal, state, local and/or payroll
      taxes of any kind required by law to be withheld with respect to such income.
      The Company and its Subsidiaries shall, to the extent permitted by law, have
      the
      right to deduct any such taxes from any payment of any kind otherwise due to
      the
      participant. 

     

    (b)
      Payment in Shares. A Participant may elect, with the consent of the Committee,
      to have such tax withholding obligation satisfied, in whole or in part, by
      (i)
      authorizing the Company to withhold from shares of Stock to be issued pursuant
      to an Award a number of shares with an aggregate Fair Market Value (as of the
      date the withholding is effected) that would satisfy the minimum withholding
      amount due with respect to such Award, or (ii) transferring to the Company
      shares of Stock owned by the participant for a period of at least six months
      and
      with an aggregate Fair Market Value (as of the date the minimum withholding
      is
      effected) that would satisfy the withholding amount due. 

     

    SECTION
      12. Transfer, Leave of Absence, Etc. 

     

    For
      purposes of the Plan, the following events shall not be deemed a termination
      of
      employment: 

     

    (i)
      a
      transfer to the employment of the Company from a Subsidiary or from the Company
      to a Subsidiary, or from one Subsidiary to another; 

     

    (ii)
      an
      approved leave of absence for military service or sickness, or for any other
      purpose approved by the Company, if the employee's right to re-employment is
      guaranteed either by a statute or by contract or under the policy pursuant
      to
      which the leave of absence was granted or if the Committee otherwise so provides
      in writing. 

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    SECTION
      13. Amendments and Termination. 

     

    The
      Board
      may at any time amend or discontinue the Plan and the Committee may at any
      time
      amend or cancel any outstanding Award (or provide substitute Awards at the
      same
      or reduced exercise or purchase price or with no exercise or purchase price,
      but
      such price, if any, must satisfy the requirements which would apply to the
      substitute or amended Award if it were then initially granted under this Plan)
      for the purpose of satisfying changes in law or for any other lawful purpose,
      but no such action shall adversely affect rights under any outstanding Award
      without the holder's consent. However, no such amendment, unless approved by
      the
      directors of the Company, shall be effective if it would cause the Plan to
      fail
      to satisfy the incentive stock option requirements of the Code.

     

    SECTION
      14. Status of Plan. 

     

    With
      respect to the portion of any Award which has not been exercised and any
      payments in cash, Stock or other consideration not received by a participant,
      a
      participant shall have no rights greater than those of a general creditor of
      the
      Company unless the Committee shall otherwise expressly determine in connection
      with any Award or Awards. In its sole discretion, the Committee may authorize
      the creation of trusts or other arrangements to meet the Company's obligations
      to deliver Stock or make payments with respect to Awards hereunder, provided
      that the existence of such trusts or other arrangements is consistent with
      the
      provision of the foregoing sentence. 

     

    SECTION
      15. Change of Control Provisions. 

     

    Upon
      the
      occurrence of a Change of Control as defined in this Section 15: 

     

    (i)
      subject to the provisions of clause (iii) below, after the effective date of
      such Change of Control, each holder of an outstanding Stock Option, Restricted
      Stock Award, Performance Share Award or Stock Appreciation Right shall be
      entitled, upon exercise of such Award, to receive, in lieu of shares of Stock
      (or consideration based upon the Fair Market Value of Stock), shares of such
      stock or other securities, cash or property (or consideration based upon shares
      of such stock or other securities, cash or property) as the holders of shares
      of
      Stock received in connection with the Change of Control; 

     

    (ii)
      the
      Committee may accelerate the time for exercise of, and waive all conditions
      and
      restrictions on, each unexercised and unexpired Stock Option, Restricted Stock
      Award, Performance Share Award and Stock Appreciation Right, effective upon
      a
      date prior or subsequent to the effective date of such Change of Control,
      specified by the Committee; or 

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (iii)
      each outstanding Stock Option, Restricted Stock Award, Performance Share Award
      and Stock Appreciation Right may be cancelled by the Committee as of the
      effective date of any such Change of Control provided that (x) notice of such
      cancellation shall be given to each holder of such an Award and (y) each holder
      of such an Award shall have the right to exercise such Award to the extent
      that
      the same is then exercisable or, in full, if the Committee shall have
      accelerated the time for exercise of all such unexercised and unexpired Awards,
      during the thirty (30) day period preceding the effective date of such Change
      of
      Control. 

     

    (b)
      "Change of Control" shall mean the occurrence of any one of the following
      events: 

     

    (i)
      any
      "person" (as such term is used in Sections 13(d) and 14(d)(2) of the Act)
      becomes a "beneficial owner" (as such term is defined in Rule 13d-3 promulgated
      under the Act) (other than the Company, any trustee or other fiduciary holding
      securities under an employee benefit Plan of the Company, or any Corporation
      owned, directly or indirectly, by the stockholders of the Company in
      substantially the same proportions as their ownership of stock of the Company),
      directly or indirectly, of securities of the Company representing fifty percent
      (50%) or more of the combined voting power of the Company's then outstanding
      securities; or 

     

    (ii)
      the
      stockholders of the Company approve a merger or consolidation of the Company
      with any other Corporation or other entity, other than a merger or consolidation
      which would result in the voting securities of the Company outstanding
      immediately prior thereto continuing to represent (either by remaining
      outstanding or by being converted into voting securities of the surviving
      entity) more than sixty-five percent (65%) of the combined voting power of
      the
      voting securities of the Company or such surviving entity outstanding
      immediately after such merger or consolidation; or 

     

    (iii)
      the
      stockholders of the Company approve a Plan of complete liquidation of the
      Company or an agreement for the sale or disposition by the Company of all or
      substantially all of the Company's assets. 

     

    SECTION
      16. General Provisions. 

     

    (a)
      No
      Distribution; Compliance with Legal Requirements. The Committee may require
      each
      person acquiring shares pursuant to an Award to represent to and agree with
      the
      Company in writing that such person is acquiring the shares without a view
      to
      distribution thereof. No shares of Stock shall be issued pursuant to an Award
      until all applicable securities laws and other legal and stock exchange
      requirements have been satisfied. The Committee may require the placing of
      such
      stop orders and restrictive legends on certificates for Stock and Awards as
      it
      deems appropriate. 

     

    (b)
      Delivery of Stock Certificates. Delivery of stock certificates to participants
      under this Plan shall be deemed effected for all purposes when the Company
      or a
      stock transfer agent of the Company shall have delivered such certificates
      in
      the United States mail, addressed to the participant, at the participant's
      last
      known address on file with the Company. 

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (c)
      Other
      Compensation Arrangements; No Employment Rights. Nothing contained in this
      Plan
      shall prevent the Board from adopting other or additional compensation
      arrangements, including trusts, subject to stockholder approval if such approval
      is required; and such arrangements may be either generally applicable or
      applicable only in specific cases. The adoption of the Plan or any Award under
      the Plan does not confer upon any employee any right to continued employment
      with the Company or any Subsidiary. 

     

    SECTION
      17. Effective Date of Plan. 

     

    The
      Plan
      shall become effective upon approval by the board of directors of the Company;
      however, no Incentive Stock Option shall be granted unless and until the Plan
      is
      ratified at a meeting of the stockholders of the Company.

     

    SECTION
      18. Governing Law. 

     

    This
      Plan
      shall be governed by, and construed and enforced in accordance with, the
      substantive laws of the State of Washington without regard to its principles
      of
      conflicts of laws.

     

     

     

    13Filed by Automated Filing Services Inc. (604) 609-0244 - Teryl Resources Corp. - Exhibit 4.1

John Robertson 

  185 - 10751 Shellbridge Way 

  Richmond, B.C. 

  V6X 2W8 

Commitment to Provide Financing to Teryl Resources
  Corp. as 

  Required for Ongoing Operations 

In the event that Teryl Resources Corp., (the "Company"), is
not able to obtain funds required for maintaining its ongoing operations from
other sources, I, John Robertson, hereby agree and commit to provide, and or/
arrange for, any such funds for the Company, on either a loan, equity, or
combination basis, on such terms as may be mutually agreeable, and which comply
with any regulatory rules and regulations applicable to such transactions. 

At this time, it appears that the ongoing capital requirements
of the Company, in order to properly maintain its status as a publicly traded
company are approximately C$100,000 per year. 

I hereby state that I am capable of providing, and agree to
provide and/or arrange for such funds for such period of time as required, until
the Company is able to obtain adequate funding from other sources, and/or
generate net earnings from revenues, which will sustain its ongoing operations.

Agreed to this 14th day of February, 2000. 

/s/ John G. Robertson

 John G. Robertson 

	Tel: (604) 278-5996 	US: (800) 661-6465 	Fax (604) 278-3409

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