Document:

Exhibit 10.19

 

	
   

  	
  NEW
  MEXICO STATE LAND OFFICE

  APPLICATION FOR

  ASSIGNMENT OF A GENERAL MINING

  LEASE

  	
  LAND OFFICE USE ONLY

  FROM: HG-0061

  TO: HG0061-1

  

 

	
  FOR VALUE RECEIVED,

  	
   

  	
  Great Western Exploration, LLC,

  	
   

  	
  (“Assignor” whether one or more),

  
	
   

  	
   

  	
  Name (include name of spouse, if any, or type of business entity)

  	
   

  	
   

  

 

assigns and conveys to: BE Resources, Inc.,
(“Assignee” whether one or more), whose mailing address is 107 Hackney Cr.,
Elephant Butte, NM 87935, the entire interest and title in and to Mineral Lease
No. HG-0061 (“the Lease”) initially made by the New Mexico State Land
Office to: Great Western Exploration, LLC, dated January 3, 2005,
insofar as the Lease covers the following land in Socorro County, New Mexico:

 

	
  Subdivision

  	
   

  	
  Section

  	
   

  	
  Township

  	
   

  	
  Range

  	
   

  	
  Acres

  	
   

  	
  Institution

  	
   

  
	
  Lots 7, 8, 9

  	
   

  	
  17

  	
   

  	
  9S

  	
   

  	
  8W

  	
   

  	
  127.90

  	
   

  	
  CS

  	
   

  

 

together with the rights incident thereto,
and improvements thereon, if any.

 

Assignee assumes and agrees
to perform all duties and obligations to the Commissioner of Public Lands
including payment of rentals and royalties, and to do such other acts as are
required by the Lease, to the same extent and in the same manner as if the
provisions of the Lease were fully set out herein.

 

Assignor warrants the
leasehold estate herein assigned, except as to any valid overriding royalty,
production payment, operating agreement or sub-lease, if any, now of legal
record, and covenants to the Assignee and the Commissioner of Public Lands that
the leasehold estate assigned is valid, and that all rentals and royalties due
under the Lease have been paid in full, and that all other Lease obligations
presently due have been fully performed.

 

	
  EXECUTED this 4 day of September, 2007.

  	
  By:

  	
  /s/ David Q. Tognoni

  
	
   

  	
   

  	
  Assignor

  
	
   

  	
   

  	
   

  
	
   

  	
  General Manager, Great
  Western Exploration, LLC

  
	
   

  	
  Spouse, if any, or title,
  if signing in representative capacity

  

 

ASSIGNEE’S ACCEPTANCE

 

The undersigned Assignee named above hereby
agrees to be bound by all of the terms, covenants, and conditions of the Lease
and this Assignment and shall succeed to the rights and benefits under the
Lease.

 

	
  EXECUTED this 4 day of September, 2007.

  	
  By:

  	
  /s/ David Q. Tognoni

  
	
   

  	
   

  	
  Assignee

  
	
   

  	
   

  	
   

  
	
   

  	
  President, BE
  Resources Inc.

  
	
   

  	
  Spouse, if any, or title,
  if signing in representative capacity

  

 

 

APPROVAL OF THE COMMISSIONER

 

Office of the Commissioner of Public Lands

Santa Fe, New Mexico

 

I hereby certify that this
Assignment was filed in my office on: RECEIVED SEP 06 2007, and was approved by
me and shall be effective as to the State of New Mexico on: APPROVED SEP 10
2007.

 

	
   

  	
  /s/ Patrick H. Lyons

  
	
   

  	
  COMMISSIONER OF PUBLIC LANDS

  

 

ACKNOWLEDGMENT IN AN INDIVIDUAL CAPACITY

 

	
  State of 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  County of 

  	
   

  	
   

  

 

	
  This instrument was acknowledged before me on

  	
   

  	
   

  	
  (date) by

  
	
   

  	
   

  
	
   

  	
   

  	
  (name(s) of person(s))

  
					

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature of Notarial Officer

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  (Seal)

  	
   

  
	
   

  	
  My commission expires:

  	
   

  	
   

  
					

 

ACKNOWLEDGMENT IN A REPRESENTATIVE CAPACITY

 

State of NEW MEXICO

 

County of SIERRA

 

This instrument was acknowledged before me on
SEPT. 4, 2007 (date) by

 

David Q. Tognoni (name(s) of person(s))

 

as General Manager, (type of authority,
e.g., officer, trustee, etc.) of

 

Great Western Exploration, LLC (name of
party on behalf of whom instrument was executed.)

 

	
   

  	
  /s/ Kandie Lanford

  	
   

  
	
   

  	
  Signature of Notarial Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  KANDIE LANFORD

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  NOTARY PUBLIC

  	
   

  
	
  (Seal)

  	
   

  	
   

  
	
   

  	
  My commission expires:

  	
  10-26-08

  	
   

  
					

 

 

INSTRUCTIONS AND INFORMATION

 

1.                                       FILING:  All
Assignments must be filed in the State Land Office in triplicate, with original
signatures on all three copies, within one hundred (100) days from the
date of signing, and must be accompanied by the recording fee.

 

2.                                       RECORDING FEE:  The
non-refundable recording fee for each Assignment is fifty dollars ($50.00).

 

3.                                       PERSONAL CHECKS:  When
an Assignment is accompanied by a personal check, the Commissioner of Public
Lands reserves the right to withhold approval of the Assignment until the check
is paid.

 

4.                                       ASSIGNMENT APPROVAL:  The Commissioner will approve an assignment
of a mineral lease, in whole or in part, if the Commissioner finds:

 

A.                                   the Assignment
does not create an undivided interest in the lease or any part thereof;

 

B.                                     the assigned
portion of the premises is not less than a legal subdivision;

 

C.                                     the Assignment
is executed on the proper form and by the proper person;

 

D.                                    the lease is in
good standing as to the assigned portion of the premises;

 

E.                                      no litigation
is pending that could affect the lease or the interest of any person therein;

 

F.                                      the Assignee
has been pre-qualified pursuant to 19.2.2.21 NMAC;

 

G.                                     the Assignment
will not adversely affect the interests of the trust; and

 

H.                                    the Assignment
is to no more than two persons.

 

5.                                       COMPLETE ADDRESS:  An
Assignment must show the complete post office address of the Assignee.

 

6.                                       ACKNOWLEDGMENT:  An
Assignment must be executed before an officer authorized to take
acknowledgments of deeds. Persons executing on behalf of a corporation or other
business entity must indicate title or authority to execute.

 

7.                                       MARITAL STATUS:  An
Assignment must show whether the Assignors are married or single; if married,
both husband and wife must sign the Assignment. The Certificates of
Acknowledgment must show the marital status of the Assignors.

 

8.                                       COMMUNICATIONS:  All
official business, letters and communications must be addressed directly to the
Commissioner of Public Lands, Oil, Gas, and Minerals Division.

 

9.                                       PAYMENT:  All payments
for annual rental, recording, and approval of fees are to be made to:

 

COMMISSIONER OF PUBLIC LANDS

P.O. Box 1148

Santa Fe, NM 87504-1148

 

 

NEW MEXICO STATE LAND OFFICE

DISCLOSURE STATEMENT

19.2.2.19 AND 19.2.2.20 NMAC

 

This disclosure statement
dated this 4 day of September, 2007 is provided by BE Resources Inc.,
hereinafter referred to as “applicant” to the Commissioner of Public Lands in
accordance with 19.2.2.19 and 19.2.2.20 NMAC, as a prerequisite to securing an
assignment of a general mining lease as authorized by New Mexico Statutes
Annotated (NMSA) 1978 paragraph 19-8-14 and subsequent paragraphs. Current
business address and telephone number of applicant: 107 Hackney Circle,
Elephant Butte, New Mexico 87935, Telephone: 505-744-4014.

 

A.            Names and addresses of all predecessor or parent
organizations or affiliates, if any. Please also include, if the applicant is
an entity: (i) the state in which such entity was formed; (ii) the
nature of the legal entity (partnership, LLC, etc.); (iii) the
address of the principal place of business in New Mexico and/or the registered
agent in New Mexico:

 

BE
Resources Inc. is a Colorado company incorporated on August 8, 2007.
BE Resources Inc. has no predecessors or parents. BE Resources Inc.
is acquiring the state mining leases from Great Western Exploration, LLC,
the Colorado limited company which presently owns the leases. The principal
place of business for BE Resources Inc. is 107 Hackney Circle, Elephant
Butte, New Mexico 87935.

 

B.            Previous mining experience, including a list of mines
currently or previously operated. For each mine, please state type of mine,
mineral(s) mined, its location (county and state or foreign country), and
any name by which the mine is or was known. Include mines operated by any of
the organizations you have listed in Paragraph A above.

 

BE
Resources Inc. has no previous mining operation history. If approved, BE
Resources Inc. will be the assignee of State Land Office Lease
Nos. HG-0059, HG-0060 and HG-0061 which are currently held by Great
Western Resources, LLC, a qualified state mineral lessee and the proposed
assignor of the lease which is the initial purpose of this disclosure
statement.

 

C.            List any and all financial assurances designed to assure
performance of an obligation that you have forfeited in the past ten years. For
each forfeiture, state the date or approximate date and the reason for the
forfeiture, and the address of each entity to whom the forfeiture was made.
(Include all forfeitures by entities identified in Paragraph A.)

 

None

 

D.            List any and all penalties and fines in excess of five
hundred dollars ($500.00) that you have paid in the past ten years for
violating or allegedly violating any permit or law whose primary purpose is to
protect or assure reclamation of the environment. For each such penalty or
fine, please state its amount, the date or approximate date it was paid, and
describe the violation or alleged violation that resulted in the penalty or
fine. (Include any such penalties paid by any entitles listed in
paragraph A. above.)

 

None

 

E.             List all persons by name and title or position who could
exercise management control over how mining activities would be conducted:

 

David
Tognoni, General Manager of BE Resources Inc.

 

F.             Type of minerals in the geological area of interest and
basis for believing a successful mine can be established in the geological area
of interest:

 

Beryllium
and associated minerals and ores.

 

 

G.            Proposed methods of exploration and extraction:

 

Exploration—drilling
permitted by the State of New Mexico. Current permitted program is ongoing.
Extraction—Conventional underground or open-pit as permitted by the State of
New Mexico.

 

H.            Descriptions of any mitigating circumstances that may
help explain negative information (such as payment of penalties, etc):

 

Not
applicable.

 

I.              Please set forth any additional information for the
Commissioner the applicant believes would help the Commissioner assess the
applicant’s qualifications, environmental and mining track records, and
intentions regarding the area proposed to be covered by a general mining lease

 

Mr. David
Tognoni, President of BE Resources Inc., is a professional engineer who
has 27 years experience in mining and mineral exploration. Mr. Tognoni
is a registered Professional Engineer, State of New Mexico. A description of
his experience is attached hereto.

 

In
addition, Mr. Stewart Jackson has been retained as a mining consultant by
BE Resources Inc. He has 40 years experience in the mining business,
as described in his resume attached hereto.

 

The
Commissioner retains the right to request additional information pertinent to
assessing your qualifications, environmental record, mining record, and
intentions regarding the area to be covered by a proposed lease, which he deems
necessary.

 

I,
David Tognoni, do hereby certify that I have personal knowledge of the
information supplied and, to the best of my knowledge, all the statements made
in this Disclosure Statement are true and complete.

 

	
   

  	
  /s/ David Tognoni

  
	
   

  	
  David Tognoni

  

 

ACKNOWLEDGMENT IN A REPRESENTATIVE CAPACITY

 

	
  State of New Mexico

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.

  
	
  County of SIERRA

  	
  )

  	
   

  

 

This instrument was
acknowledged before me on SEPT. 4, 2007 by David Tognoni as President of BE
Resources Inc.

 

	
   

  	
  /s/ Kandie Lanford

  
	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  
	
   

  	
  Printed Name:

  	
   

  
	
   

  	
   

  	
   

  
	
  (Seal)

  	
  KANDIE LANFORD

  
	
   

  	
   

  	
   

  
	
   

  	
  My commission expires:

  	
  10-26-08

  
				

 

2Exhibit 10.20

 

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;

 

1

 

(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);

 

(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.

 

2

 

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

 

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 

 

3

 

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
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

 

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
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 

 

5

 

(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
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 

 

6

 

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 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.

 

7

 

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 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 7, 2007.

 

8

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