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Exhibit 10.20    
    

 
 

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 

2

 

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. 

3

 

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:	 	    
    

4

 

 
 

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. 

A-2

 

 
 

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 

A-4

 

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-1

QuickLinks

Exhibit 10.20

BE RESOURCES INC. STOCK OPTION AGREEMENT

WITNESSETH

EXHIBIT A BE Resources Inc. Stock Option Plan

BE RESOURCES INC. STOCK OPTION PLAN

SECTION 1 PURPOSE AND SCOPE

SECTION 2 DEFINITIONS

SECTION 3 LIMITATIONS

SECTION 4 ADMINISTRATION

SECTION 5 SHARES SUBJECT TO THE PLAN

SECTION 6 INCENTIVE STOCK OPTION ELIGIBILITY

SECTION 7 STOCK OPTIONS/GRANTS

SECTION 8 ADJUSTMENTS IN THE EVENT OF CERTAIN CHANGES IN CAPITAL STRUCTURE

SECTION 9 AMENDMENT OR TERMINATION OF THE PLAN

SECTION 10 OTHER

EXHIBIT B BE RESOURCES INC. NOTICE AND AGREEMENT OF EXERCISE OF OPTIONlicense1.htm

    Exhibit
10.1

     

    LICENSE
AGREEMENT

     

    This
LICENSE AGREEMENT (the "License Agreement") is by and between

     

    
    

    Implant Sciences Corporation, a Massachusetts
corporation having offices at 107 Audubon Road, Wakefield, MA  01880-1246,
USA ("Implant Sciences")

     

    and

    International Brachytherapy, s.a.,
having offices at Zone Industrielle C, 7180 Seneffe, Belgium  ("IBt")

    made and
effective on the date set forth on the signature page hereof.

     

    RECITALS

     

    WHEREAS, Implant Sciences is
the owner of certain intellectual property identified below; and

     

    WHEREAS, IBt wishes to acquire
the Xenation Business of Implant Sciences, as defined below, and to utilize such
intellectual property in its business; and

     

    WHEREAS, Implant Sciences is
willing to grant IBt licenses to utilize the intellectual property on the terms
and conditions hereinafter set forth;

     

    AGREEMENT

     

    NOW, THEREFORE, the parties,
intending to be legally bound, agree as follows:

     

    1.
Definitions

     

    As used
in this License Agreement, the following phrases shall have the meanings set
forth below:

     

    1.01 Xenation Business. This
phrase shall mean using Xenation machines to implant Xenon-124 atoms and other
ions into cores used to produce low dose rate brachytherapy seeds and other
radioactive sources for the treatment of diseases.

     

    1.02. Xenation Intellectual Property
Rights. This phrase shall mean the right to make, have made, use, import,
export and sell products and services within the scope of any and all claims
reciting xenon in: (i)
U.S. Patent Number 6,183,409, for which the pertinent claims are 9 through 13;
(ii) any foreign counterparts of the aforementioned patent; and (iii) any
reissue, continuation, divisional or continuation-in-part applications claiming
priority directly or indirectly from any such patent, and such patents as may
issue from any such application, and also including the right to claim priority
under any applicable statute, treaty or convention based on any of said patent
applications. Also within the meaning of this phrase is the right to Licensor's
know-how for practicing the subject matter of said patent claims and for
operating Xenation equipment to implant Xenon-124 atoms and other ions into
various materials.

     

    1.03. Ancillary Intellectual Property
Rights. This phrase shall mean the right to make, have made, use, import,
export and sell products and services produced by implanting xenon atoms or ions
into materials as covered by any claims, other than claims included in the
Xenation Intellectual Property Rights as defined above, of any U.S. or foreign
patent for which Implant Sciences, at the time of the later of the effective
date of this Agreement or the Assignment Effective Date, as defined below, has
the power to grant a nonexclusive license, including claims 1 through 8 of U.S.
Patent 6,183,409, and any reissue, continuation, divisional or
continuation-in-part applications claiming priority directly or indirectly from
any such patent, and such patents as may issue from any such
application.

     

    1.04 Licensor. The term
Licensor shall mean Implant Sciences. Following the assignment of or transfer of
interest in any or all of the Xenation Intellectual Property Rights and the
Ancillary Intellectual Property Rights, the Term Licensor shall mean the
successor in interest.

     

    1.05 Licensee. The term
Licensee shall mean IBt, and any successor to this License
Agreement.

     

    1.06 BMI. The term BMI shall
mean Best Medical International, Inc.

     

    2. Grant

     

    2.01 Grant of Exclusive License.
Licensor hereby grants Licensee a perpetual, worldwide, royalty-free,
exclusive license to the Xenation Intellectual Property Rights. Licensor is
hereby excluded from practicing the Xenation Intellectual Property
Rights.

     

    2.02 Grant of Non-Exclusive License.
Licensor hereby grants Licensee a perpetual, worldwide, royalty-free,
non-exclusive license to the Ancillary Intellectual Property
Rights.

     

    3. Assignment and
Sublicensing

     

    3.01 Assignability by Licensee.
Licensee shall have the right to assign the rights and licenses granted
in this License Agreement to a purchaser of its Xenation Business.

     

    3.02 Sublicensing Right.
Licensee shall have the power to grant sublicenses based on the aforesaid
licenses.

     

    3.03 Attachment of Licenses. Any
assignment by Licensor of U.S. Patent 6,183,409, and/or any Xenation
Intellectual Property Rights, and/or any Ancillary Intellectual Property Rights,
shall be expressly subject to the licenses granted under this License Agreement.
Licensor shall give Licensee two weeks notice of its intention to grant rights
or transfer an ownership in the Xenation Intellectual Property Rights and/or the
Ancillary Intellectual Property Rights to a third party. IBt hereby acknowledges
receipt of Implant Sciences’ intention to grant rights or transfer an ownership
in the Xenation Intellectual Property Rights and/or the Ancillary Intellectual
Property Rights to BMI. If Licensor attempts to grant rights or transfer an
ownership interest in the Xenation Intellectual Property Rights and/or the
Ancillary Intellectual Property Rights to a third party without reciting and
obligating the grantee or transferee to respect the interest of Licensee in any
grant or transfer document relating thereto, such attempted grant or transfer
shall be null and void.

     

    3.04 Security Interest and
Recordation. Licensor hereby grants to Licensee a Security Interest in
the Xenation Intellectual Property Rights and Ancillary Intellectual Property
Rights in the form of the Security Agreement attached as Exhibit SA. Licensor
hereby grants to Licensee the power to record with and limited to the U.S.
Patent and Trademark Office and the patent office of any other jurisdiction for
which there is a patent or patent application of the Xenation Intellectual
Property Rights, and/or Ancillary Intellectual Property Rights.

     

    3.05 Third-Party Beneficiary.
Licensee shall be a third-party beneficiary in any permitted grant or
transfer by Licensor of any of the Xenation Intellectual Property Rights and/or
the Ancillary Intellectual Property Rights.

     

     

    4.
Consideration

     

    In
consideration for the Grant and obligations undertaken by Licensor, IBt shall
pay Implant Sciences a one-time fee of Ten Dollars ($10.00). Said fee shall be
paid to Implant Sciences upon closing of the sale of its Xenation Business to
IBt.

     

    5. Enforcement of Intellectual
Property Rights. In the event that either party hereto becomes aware that
anyone is infringing any part of the Xenation Intellectual Property Rights, then
it shall promptly notify the other and provide any supporting evidence of which
that party has knowledge. Licensee shall have the right but not the obligation
to initiate litigation to terminate the infringement, at Licensee's expense,
and, if so required, to sue in Licensor's name or join Licensor as a plaintiff.
In connection with the foregoing:

     

    (a) Licensee
shall keep Licensor informed as to developments.

     

    (b) Implant
Sciences and any successor in interest shall provide such reasonable cooperation
to Licensee as Licensee shall reasonably request, at Licensee's expense,
including by using commercially reasonable efforts to provide documents,
witnesses, and any other reasonably obtainable evidence.

     

    (c) In the
event that the termination of the litigation results in the payment of any
damages, royalties, or other cash consideration to either Licensee or Licensor,
Licensee shall receive such consideration.

     

    6.
Maintenance of
Patents

     

    Licensor
shall maintain in force all patents of the Xenation Intellectual Property Rights
by paying all government fees at least one month before they become due.
Licensor shall immediately report such payments to Licensee. If Licensor should
fail to report any such payment one month before a due date, Licensee shall be
entitled to make such payment and to be reimbursed for the cost thereof plus a
handling charge of 100% of the total cost incurred.

     

    7. General

     

    7.01. Term. This License
Agreement shall become effective as of the date first written above and shall
continue in force until six years following the expiration of the last-to-expire
patents included in the Xenation Intellectual Property Rights and the Ancillary
Intellectual Property Rights.

     

    7.02. Termination. This
License Agreement may be terminated for breach by either party of any material
provision of this License Agreement if written notice of breach has been given
and the breach has not been cured within sixty days of the receipt of such
notice.

     

    7.03. Post-Termination.
Termination of this License Agreement shall not relieve either party of
any obligations which accrued prior to termination of this License Agreement and
which have not been fulfilled at the time of termination. Such obligations
include the duty to pay the other party for litigation expenses or awards, as
set forth in Section 5.(c) of this License Agreement.

     

    7.04. Correspondence. All
notices, reports, or requests shall be given by one party in writing to the
other by certified mail, electronic mail, or fax to the addresses set forth
below or to such other address as may be designated by a party by
notice:

     

    If to
Licensee:                                                                      Attention: Mr.
Francois Blondel

    Chief
Executive Officer

    International Brachytherapy,
s.a.

    Zone Industrielle C, 7180 Seneffe,
Belgium

    Email:fblondel@ibt.be

    Fax: +32 64 52 08 01

    

    If to
Licensor:                                                                     
Attention: ___________________

    Implant Sciences
Corporation

    107 Audubon Road

    Wakefield, MA 01880-1246,
USA

    Email:

    Fax:

    

    7.05. Choice of Law and Venue.
This License Agreement shall be construed and interpreted in accord with
United States federal law and the law of the State of Maryland (U.S.A.) except
for its conflict of laws principles. Each party irrevocably (i) agrees that any
action or proceeding arising from or relating to this Agreement may be brought
only in the courts of Maryland or the U.S. District Court located in Baltimore,
Maryland, (ii) consents, for itself and in respect of its property, to the
jurisdiction of each such court in any such action or proceeding, and (iii)
waives any objection to proceeding in such venue, including that the forum is
inconvenient.

     

    7.06. Entire Agreement. This
License Agreement sets forth the entire agreement and understanding of the
parties as to the subject matter hereof and merges all discussions between them.
Neither party shall be bound by any terms or conditions except as expressly set
forth herein or as duly set forth in a subsequent document signed by authorized
representatives of the parties.

     

    7.07. Severability. If any
provision of this License Agreement is held invalid, such holding shall not
affect the validity of any other provision of this License
Agreement.

     

    7.08. Assignment to BMI. IBt
hereby acknowledges Implant Sciences’ intention to assign or transfer ownership
in the Xenation Intellectual Property Rights and Ancillary Intellectual Property
Rights to BMI (“Assignment”). IBt agrees that in the event of the Assignment,
IBt shall, and hereby does, forever release and discharge Implant Sciences, as
of the effective date of the Assignment (the “Assignment Effective Date”), from
any and all warranties, covenants, and obligations of Licensor under this
License Agreement, excluding only those obligations of Implant Sciences
expressly set forth in Section 5.(b), from and after the Assignment Effective
Date, and IBt further agrees that, from and after the Assignment Effective Date,
as between Implant Sciences and BMI, only BMI shall have any obligation to
perform any liability with respect to any and all warranties, covenants, and
obligations of Licensor under this License Agreement, excluding only those
obligations of Implant Sciences expressly set forth in Section
5.(b).

     

    [Remainder
of page intentionally left blank; Signature page follows]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have executed this License Agreement on the day and year written
below.

     

    International
Brachytherapy,
s.a.                
Implant Sciences Corporation,

    Licensee                                                             Licensor

    By:                       By:

    

    /s/ John Carden                             /s/ Phillip C. Thomas

    Name:  
John
Carden                                         Name: 
Phillip C. Thomas

    Title:     Director                                         Title:  
CEO

    Date:     June
30,
2008                                Date:  June
30, 2008

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      SECURITY
AGREEMENT

       

    

    This
SECURITY AGREEMENT (the "Agreement") is by and between

     

    
      	
               
      

            	
              International Brachytherapy,
      s.a., having offices at Zone Industrielle C, 7180 Seneffe, Belgium
      ("Secured Party" or “IBt”)

            

    

    and

    
      	
               
      

            	
              Implant Sciences Corporation,
      a Massachusetts corporation having offices at 107 Audubon Road,
      Wakefield, MA 01880-1246, USA ("Grantor" or “Implant
      Sciences”)

            

    

    made and
effective on the date set forth on the signature page hereof

     

    RECITALS

     

    WHEREAS, the Grantor is the
owner of certain Collateral defined herein; and

     

    WHEREAS, the Secured Party
seeks a security interest in said Collateral to secure the rights granted to it
in the License Agreement (hereinafter the "Obligations"); and

     

    WHEREAS, the Grantor, having
been duly advised of its rights and liabilities by independent counsel, wishes
to grant a security interest in favor of the Secured Party as herein
provided;

     

    AGREEMENT

     

    NOW, THEREFORE, in
consideration of the promises contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties, intending to be legally bound, agree as follows:

     

    1.
Definitions and
Interpretation

     

    As used
in this Agreement, the following phrases shall have the meanings set forth
below:

     

    1.01 Terms Defined in License
Agreement. All capitalized terms used in this Agreement and not otherwise
defined herein shall have the meanings assigned to them in the License
Agreement.

     

    1.02 Certain Defined Terms. As
used in this Agreement, the following terms shall have the following
meanings:

     

    (i) Collateral. This word has the
meaning set forth in Section 2.

     

    (ii) Patent Office. This term means
the United States Patent and Trademark Office and the patent office of any other
jurisdiction.

     

    (iii) License Agreement. This phrase
means that certain License Agreement, dated as of the date hereof, between
Implant Sciences Corporation and International Brachytherapy, s.a.

     

    (iv) UCC. This term means the
Uniform Commercial Code as in effect in the state of Maryland.

     

    1.03 Terms Defined in UCC.
Where applicable in the context of this Agreement and except as otherwise
defined herein, terms used in this Agreement shall have the meaning assigned to
them in the UCC.

     

    1.04 Construction. In this
Agreement, the following rules of construction and interpretation shall be
applicable: (i) no reference to "proceeds" in this Agreement authorizes any
sale, transfer, or other disposition of any Collateral by the Grantor; (ii)
"includes" and
"including" are not limiting; (iii) "or" is not exclusive; and (iv) "all"
includes "any" and "any" includes "all." To the extent not inconsistent with the
foregoing, rules of construction and interpretation applicable to the License
Agreement shall also be applicable to this Agreement and are incorporated herein
by reference.

     

    2. Security
Interest

     

    2.01 Grant of Security Interest.
The Grantor hereby assigns, transfers, and conveys to the Secured Party,
and grants a security interest in: (i) U.S. Patent Number 6,183,409; (ii) any
foreign counterparts of the foregoing patent; (iii) any reissue, continuation,
divisional or continuation-in-part applications and such patents as may issue
thereon; and (iv) the right to claim priority under any applicable statute,
treaty, or convention, to said patent applications (all hereinafter called the
"Collateral").

     

    2.02 Continuing Security Interest.
The Grantor agrees that this Agreement shall create a continuing security
interest in the Collateral which shall remain in effect for the Term defined in
Section 8.01 of this Agreement.

     

    3. Supplement to License
Agreement

     

    This
Agreement has been entered into in conjunction with the License Agreement. The
rights and remedies of the Secured Party (referred to as "Licensee" in the
License Agreement) with respect to the security interest granted herein are
without prejudice to, and are in addition to those set forth in the License
Agreement, the terms and provisions of which are incorporated herein by
reference.

     

    4. Grantor's
Warranties and Covenants The Grantor makes the
following warranties and covenants:

     

    (i)           The
Grantor will, on a continuing basis, make, execute, acknowledge and deliver, and
file and record in the proper filing and recording places, all such instruments
and documents, and take all such action as may be necessary or advisable or may
be requested by the Secured Party to carry out the intent and purposes of this
Agreement, or for assuring, confirming, or protecting the grant or perfection of
the security interest granted or purported to be granted hereby, to ensure the
Grantor's compliance with this Agreement or to enable the Secured Party to
exercise and to enforce its rights and remedies hereunder with respect to the
Collateral, including any documents for filing with the Patent
Office.

     

    (ii)           The
Grantor agrees that, at the Secured Party's option, for the maintenance and
preservation of the Collateral, the Secured Party may pay certain Patent Office
fees including but not limited to filing fees, recordation fees, issue fees,
maintenance fees and other necessary expenses, for which Grantor shall reimburse
Secured Party on demand for any payment made pursuant to the foregoing
authorization plus a handling charge of 100% of the total cost incurred;
and

     

    (iii)           The
Grantor grants the Secured Party a power of attorney and authorization to record
this Agreement, an abstract thereof, or any other document describing the
Secured Party's interest in the Collateral with the Patent Office.

     

    5. Default

     

    Until
default, Grantor may exercise ownership of the Collateral and use it in any
lawful manner not inconsistent with this Grant of Security
Interest.

     

    Grantor
shall be in default upon violation of or failure to perform any warranty,
covenant, or obligation set forth in Section 4 above or the License Agreement,
if written notice of breach has been given and the breach has not been cured
within sixty days of the receipt of such notice, or any event which results in
the acceleration of the maturity of the indebtedness of Grantor to others under
any indenture, agreement or undertaking, or any act of bankruptcy.

     

    Upon such
default and at any time thereafter, the Secured Party may declare the Collateral
secured by this Agreement immediately due. No waiver by the Secured Party of any
default shall operate as a waiver of any other default or of the same default on
a future occasion.

     

    6. Assignments

     

    Any
assignment of the Collateral to a third party shall be null and void unless the
third party stands in the shoes of the Grantor with respect to the Licensing
Agreement and the warranties and covenants set forth in Section 4, Subsections
(iii) to (v), above.  Otherwise, any such assignment shall not be
unreasonably withheld.

     

    7. Binding
Effect

     

    All
rights of the Secured Party under this Agreement shall inure to the benefit of
its successors and assigns. Any and all of the warranties, covenants, and
obligations of the Grantor shall be binding on its assigns, trustees and
administrators.

     

    8. General

     

    8.01. Term. This Agreement
shall create a security interest effective as of the date set forth on the
signature page hereof and shall continue in force until six years after the
expiration of all patents constituting the Collateral. Thereupon, the security
interest created by this Agreement shall terminate.

     

    8.02. No Inconsistent Requirements.
The Grantor acknowledges that this Agreement and the other documents,
agreements, and instruments entered into or executed in connection herewith may
contain covenants and other terms and provisions variously stated regarding the
same or similar matters, and Grantor agrees that all such covenants, terms, and
provisions are cumulative and all shall be performed and satisfied in accordance
with their respective terms.

     

    8.03. Notices. All notices and
other communications hereunder shall be in writing and shall be mailed, sent, or
delivered in accordance with the License Agreement.

     

    8.04. Choice of Law and Venue.
This Agreement shall be construed and interpreted in accord with the laws of the
State of Maryland except as required by mandatory provisions of law or to the
extent the perfection or priority of the security interests hereunder, or the
remedies hereunder, in respect of an Collateral are governed by the law of a
jurisdiction other than Maryland. Each party irrevocably (i) agrees that any
action or proceeding arising from or relating to this Agreement may be brought
only in the courts of Maryland or the U.S. District Court located in Baltimore,
Maryland, (ii) consents, for itself and in respect of its property, to the
jurisdiction of each such court in any such action or proceeding, and (iii)
waives any objection to proceeding in such venue, including that the forum is
inconvenient.

     

    8.05. Entire Agreement. This
Agreement and the License Agreement, together with the Schedules hereto and
thereto, set forth the entire agreement and understanding of the parties as to
the subject matter hereof and merge all discussions between them. Neither this
Agreement nor any provision hereof may be modified, amended, or waived except by
the written agreement of the parties, as provided in the License
Agreement.

     

    8.06. Severability. If any
provision of this Agreement is held invalid, such holding shall not affect the
validity of any other provision of this Agreement.

     

    8.07. Assignment to BMI. IBt
hereby acknowledges Implant Sciences’ intention to assign or transfer ownership
in the Xenation Intellectual Property Rights and Ancillary Intellectual Property
Rights to Best Medical International, Inc. (“BMI”) (“Assignment”). IBt agrees
that in the event of the Assignment, IBt shall, and hereby does, forever release
and discharge Implant Sciences, as of the effective date of the Assignment (the
“Assignment Effective Date”), from any and all warranties, covenants, and
obligations of Grantor under this Agreement from and after the Assignment
Effective Date, excluding only those obligations of Implant Sciences expressly
set forth in Section 5.(b) of the License Agreement and IBt further agrees that,
from and after the Assignment Effective Date, only BMI or its assigns pursuant
to the License Agreement and this Agreement shall have any obligation to perform
and liability with respect to any and all warranties, covenants, and obligations
of Grantor under this Agreement excluding only those obligations of Implant
Sciences expressly set forth in Section 5.(b) of the License
Agreement.

     

    [Remainder
of page intentionally left blank; Signature page follows.]

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

        
           

           

          

        

      

    

    

     

    IN WITNESS WHEREOF, the
parties hereto have executed this Security Agreement on the day and
year  written below.

     

    
      International
Brachytherapy,
s.a.                
Implant Sciences Corporation,

      Secured
Party                                                    Grantor

      By:                       By:

      

      /s/ John Carden                             /s/ Phillip C. Thomas

      Name:  
John
Carden                                         Name: 
Phillip C. Thomas

      Title:     Director                                         Title:  
CEO

      Date:     June
30,
2008                                Date:  June
30, 2008

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}]]