Document:

xtrn8k20100719ex10-7.htm

Exhibit No. 10.7

 

Las Vegas Railway Express, Inc.

Board of Directors

6650 Via Austi Parkway, Suite 170

Las Vegas, NV  89119

July 19, 2010

Gentlemen:

 

I herewith tender my resignation as Chief Financial Officer and Treasurer, to take affect as of the date this resignation document is executed by my hand herein.

 

As a result of my resignation the Company agrees to indemnify me from any and all corporate activities resulting from the actions of the forthcoming directors, officers, and management of the Company.

 

 

Very truly yours,

Dated this 19th day of July 2010

By: /s/Theresa Carlise

Theresa CarliseExhibit 4.1

 

AMERICAN
LITHIUM MINERALS, INC.

2010 STOCK
PLAN

 

1.               Purpose.

 

The purpose of this plan (the “Plan”) is to secure
for American Lithium Minerals, Inc. (the “Corporation”) and its
stockholders the benefits arising from capital stock ownership by employees,
officers and directors of, and consultants or advisors to, the Corporation and
its subsidiary corporations who are expected to contribute to the Corporation’s
future growth and success. The Plan permits grants of options to purchase
shares of Common Stock, $0.001 par value per share, of the Corporation (“Common
Stock”) and awards of shares of Common Stock that are restricted as provided in
Section 12 (“Restricted Shares”). Those provisions of the Plan which make
express reference to Section 422 of the Internal Revenue Code of 1986, as
amended or replaced from time to time (the “Code”), shall apply only to
Incentive Stock Options (as that term is defined in the Plan).

 

2.               Type of Options
and Administration.

 

(a)           Types of Options. Options granted pursuant
to the Plan shall be authorized by action of the Board of Directors of the
Corporation (or a Committee designated by the Board of Directors) and may be
either incentive stock options (“Incentive Stock Options”) meeting the
requirements of Section 422 of the Code or non-statutory options which are
not intended to meet the requirements of Section 422 of the Code.

 

(b)             Administration. The Plan will
be administered by the Board of Directors of the Corporation, whose
construction and interpretation of the terms and provisions of the Plan shall
be final and conclusive. The Board of Directors may in its sole discretion
grant Restricted Shares and options to purchase shares of Common Stock and
issue shares upon exercise of such options as provided in the Plan. The Board
shall have authority, subject to the express provisions of the Plan, to
construe the respective option and Restricted Share agreements and the Plan, to
prescribe, amend and rescind rules and regulations relating to the Plan,
to determine the terms and provisions of the respective option and Restricted
Share agreements, which need not be identical, and to make all other
determinations in the judgment of the Board of Directors necessary or desirable
for the administration of the Plan. The Board of Directors may correct any
defect or supply any omission or reconcile any inconsistency in the Plan or in
any option or Restricted Share agreement in the manner and to the extent it
shall deem expedient to carry the Plan into effect and it shall be the sole and
final judge of such expediency. No director or person acting pursuant to
authority delegated by the Board of Directors shall be liable for any action or
determination under the Plan made in good faith. The Board of Directors may, to
the full extent permitted by or consistent with applicable laws or regulations
(including, without limitation, applicable state law and Rule 16b-3
promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”), or
any successor rule (“Rule 16b-3”)), delegate any or all of its powers
under the Plan to a committee (the “Committee”) appointed by the Board of
Directors, and if the

 

 

Committee is so appointed all references to
the Board of Directors in the Plan shall mean and relate to such Committee with
respect to the powers so delegated. Any director to whom an option or stock
grant is awarded shall be ineligible to vote upon his or her option or stock
grant, but such option or stock grant may be awarded any such director by a
vote of the remainder of the directors, except as limited below.

 

(c)           Applicability of Rule 16b-3. Those
provisions of the Plan which make express reference to Rule 16b-3 shall
apply to the Corporation only at such time as the Corporation’s Common Stock is
registered under the Exchange Act, and then only to such persons as are
required to file reports under Section 16(a) of the Exchange Act (a “Reporting
Person”).

 

(d)           Compliance with Section 162(m) of the Code. Section 162(m) of the Code, added by the Omnibus Budget
Reconciliation Act of 1993, generally limits the tax deductibility to publicly
held companies of compensation in excess of $1,000,000 paid to certain “covered
employees” (“Covered Employees”). It is the Corporation’s intention to preserve
the deductibility of such compensation to the extent it is reasonably
practicable and to the extent it is consistent with the Corporation’s
compensation objectives. For purposes of this Plan, Covered Employees of the
Corporation shall be those employees of the Corporation described in
Section 162(m)(3) of the Code.

 

(e)           Special Provisions Applicable to Options Granted to Covered Employees. In order for the full value of options granted to Covered Employees to
be deductible by the Corporation for federal income tax purposes, the
Corporation may intend for such options to be treated as “qualified performance
based compensation” as described in Treas. Reg. §1.162-27(e) (or any
successor regulation). In such case, options granted to Covered Employees shall
be subject to the following additional requirements:

 

(i)            such options and rights shall be granted only by a committee comprised
solely of two or more “outside directors”, within the meaning of Treas. Reg. §
1.162.27(e)(3); and

 

(ii)           the exercise price of such options shall in no event be less than the
Fair Market Value (as defined below) of the Common Stock as of the date of
grant of such options.

 

(f)            Section 409A of the Code. The
Board of Directors may only grant those awards that either comply with the
applicable requirements of Section 409A of the Code, or do not result in
the deferral of compensation within the meaning of Section 409A of the
Code.

 

3.             Eligibility.

 

(a)           (a) General. Options and Restricted Shares may be granted to
persons who are, at the time of grant, in a Business Relationship (as defined
below) with the Corporation; provided, that Incentive Stock Options may
only be granted to individuals who are employees of the Corporation (within the
meaning of Section 3401(c) of the Code). A person who has been
granted an option or Restricted Shares may, if he or she is otherwise eligible,
be granted

 

 

additional options or Restricted Shares if the Board of Directors shall
so determine. For purposes of the Plan, “Business Relationship” means that a
person is serving the Corporation, its parent, if applicable, or any of its
subsidiaries, if applicable, in the capacity of an employee, officer, director,
advisor or consultant.

 

(b)           Grant of Options to Reporting Persons. From and
after the registration of the Common Stock of the Corporation under the
Exchange Act, the selection of a director or an officer who is a Reporting
Person (as the terms “director” and “officer” are defined for purposes of
Rule 16b-3) as a recipient of an option or Restricted Shares, the timing
of the option or Restricted Share grant, the exercise price of the option and
the number of Restricted Shares or shares subject to the option shall be
determined either (i) by the Board of Directors, or (ii) by a
committee consisting of two or more “Non-Employee Directors” having full authority
to act in the matter. For the purposes of the Plan, a director shall be deemed
to be a “Non-Employee Director” only if such person qualifies as a “Non-Employee
Director” within the meaning of Rule 16b-3, as such term is interpreted
from time to time.

 

4.             Stock Subject
to Plan.

 

The stock subject to options granted under the Plan
or grants of Restricted Shares shall be shares of authorized but unissued or
reacquired Common Stock. Subject to adjustment as provided in Section 16
below, the maximum number of shares of Common Stock of the Corporation (“Shares”)
which may be issued and sold under the Plan is five million Shares. If any
Restricted Shares shall be reacquired by the Corporation, forfeited or an
option granted under the Plan shall expire, terminate or is canceled for any
reason without having been exercised in full, the forfeited Restricted Shares
or unpurchased Shares subject to such option shall again be available for
subsequent option or Restricted Share grants under the Plan. Subject to adjustment
in accordance with Section 16:

 

(a)             No more than an aggregate of
5,000,000 Shares may be issued under Stock Options during the term of the
Plan;

 

(b)             No Shares may be issued in
the form of Restricted Shares during the term of the Plan; and

 

(c)             The maximum number of Shares
with respect to which options may be granted to any one person during any
fiscal year of the Corporation may not exceed 5% of the Corporation’s issued
and outstanding shares at the time of grant.

 

These limits shall be
applied and construed consistently with Section 162(m) of the Code.

 

 

5.             Forms of Option
and Restricted Share Agreements.

 

As a condition to the
grant of Restricted Shares or an option under the Plan, each recipient of
Restricted Shares or an option shall execute an option or Restricted Share or
Stock Option agreement in such form not inconsistent with the Plan as may be
approved by the Board of Directors. Such Option or Restricted Share agreements
may differ among recipients.

 

6.             Purchase
Price.

 

(a)             General. The purchase price per
Share deliverable upon the exercise of an option shall be determined by the
Board of Directors at the time of grant of such option; provided, however,
that the exercise price of an option shall not be less than 100% of the Fair
Market Value (as hereinafter defined) of a Share, at the time of grant of such
option, or not less than 110% of such Fair Market Value in the case of an
Incentive Stock Option described in Section 11(b). “Fair Market Value” of
a Share as of a specified date for the purposes of the Plan shall mean the
closing price of a Share on the principal securities exchange on which such
Shares are traded on the day immediately preceding the date as of which Fair
Market Value is being determined, or on the next preceding date on which such
Shares are traded if no shares were traded on such immediately preceding day,
or if the Shares are not traded on a securities exchange, Fair Market Value
shall be deemed to be the average of the high bid and low asked prices of the
Shares in the over-the-counter market on the day immediately preceding the date
as of which Fair Market Value is being determined or on the next preceding date
on which such high bid and low asked prices were recorded. In no case shall
Fair Market Value be determined with regard to restrictions other than
restrictions which, by their terms, will never lapse. The Board of Directors
may also permit optionees, either on a selective or aggregate basis, to
simultaneously exercise options and sell the Shares thereby acquired, pursuant
to a brokerage or similar arrangement, approved in advance by the Board of
Directors, and to use the proceeds from such sale as payment of the purchase
price of such shares.

 

(b)             Payment of Purchase Price. Options
granted under the Plan may provide for the payment of the exercise price by
delivery of cash or a check to the order of the Corporation in an amount equal
to the exercise price of such options, or, to the extent provided in the
applicable option agreement, (i) by delivery to the Corporation of Shares
having a Fair Market Value on the date of exercise equal in amount to the
exercise price of the options being exercised, (ii) through any cashless
exercise feature that may be included in the option agreement covering a
particular option grant, (iii) by any other means which the Board of
Directors determines are consistent with the purpose of the Plan and with
applicable laws and regulations (including, without limitation, the provisions
of Rule 16b-3 and Regulation T promulgated by the Federal Reserve Board)
or (iv) by any combination of such methods of payment.

 

 

7.           Option Period.

 

Subject to earlier termination as provided in the Plan,
each option and all rights thereunder shall expire on such date as determined by
the Board of Directors and set forth in the applicable option agreement, provided,
that such date shall not be later than (10) ten years after the date on which the
option is granted.

 

8.           Exercise of Options.

 

Each option granted under the Plan shall be exercisable
either in full or in installments at such time or times and during such period as
shall be set forth in the option agreement evidencing such option, subject to the
provisions of the Plan. No option granted to a Reporting Person for purposes of
the Exchange Act, however, shall be exercisable during the first six months after
the date of grant. Subject to the requirements in the immediately preceding sentence,
if an option is not at the time of grant immediately exercisable, the Board of Directors
may (i) in the agreement evidencing such option, provide for the acceleration of
the exercise date or dates of the subject option upon the occurrence of specified
events, and/or (ii) at any time prior to the complete termination of an option,
accelerate the exercise date or dates of such option, unless it would cause an option
that otherwise qualified as an Incentive Stock Option to lose Incentive Stock Option
treatment by application of Section 422(d)(1) of the Code and Section 11(c) of the
Plan.

 

9.           Non-transferability of Options. 

 

No option granted under this Plan shall be assignable or
otherwise transferable by the optionee except by will or by the laws of descent
and distribution or pursuant to a qualified domestic relations order as defined
in the Code or Title I of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), or the rules thereunder. An option may be exercised during the
lifetime of the optionee only by the optionee. In the event an optionee dies during
his employment by the Corporation or any of its subsidiaries, or during the three-month
period following the date of termination of such employment, his option shall thereafter
be exercisable, during the period specified to the full extent to which such option
was exercisable by the optionee at the time of his death during the periods set
forth in Section 10 or 11(d). If any optionee should attempt to dispose of or encumber
his or her options, other than in accordance with the applicable terms of this Plan
or the applicable option agreement, his or her interest in such options shall terminate.

 

10.         Effect of Termination of Employment or Other
Relationship.

 

Except as provided in Section 11(d) with respect to Incentive
Stock Options, and subject to the provisions of the Plan and the applicable option
agreement, an optionee may exercise an option (but only to the extent such option
was exercisable at the time of termination of the optionee’s employment or other
relationship with the Corporation) at any time within three (3)

 

 

months following the termination of the optionee’s employment
or other relationship with the Corporation or within one (1) year if such termination
was due to the death or disability of the optionee, but, except in the case of the
optionee’s death, in no event later than the expiration date of the Option. If the
termination of the optionee’s employment is for cause or is otherwise attributable
to a breach by the optionee of an employment or confidentiality or non-disclosure
agreement, the option shall expire immediately upon such termination. The Board
of Directors shall have the power to determine what constitutes a termination for
cause or a breach of an employment or confidentiality or non-disclosure agreement,
whether an optionee has been terminated for cause or has breached such an agreement,
and the date upon which such termination for cause or breach occurs. Any such determinations
shall be final and conclusive and binding upon the optionee.

 

11.           Incentive Stock Options.

 

Options granted under the Plan which are intended to be
Incentive Stock Options shall be subject to the following additional terms and conditions:

 

(a)           Express Designation. All Incentive Stock Options granted under
the Plan shall, at the time of grant, be specifically designated as such in the
option agreement covering such Incentive Stock Options.

 

(b)           10% Stockholder. If any employee to whom an Incentive Stock
Option is to be granted under the Plan is, at the time of the grant of such option,
the owner of stock possessing more than 10% of the total combined voting power of
all classes of stock of the Corporation (after taking into account the attribution
of stock ownership rules of Section 424(d) of the Code), then the following special
provisions shall be applicable to the Incentive Stock Option granted to such individual:

 

(i)            The purchase price per share of the Common Stock subject
to such Incentive Stock Option shall not be less than 110% of the Fair Market Value
of one share of Common Stock at the time of grant; and

 

(ii)           the option exercise period shall not exceed five years
from the date of grant.

 

(c)           Dollar Limitation. For so long as the Code shall so provide,
options granted to any employee under the Plan (and any other incentive stock option
plans of the Corporation) which are intended to constitute Incentive Stock Options
shall not constitute Incentive Stock Options to the extent that such options, in
the aggregate, become exercisable for the first time in any one calendar year for
shares of Common Stock with an aggregate Fair Market Value, as of the respective
date or dates of grant, of more than $100,000 (or such other limitations as the
Code may provide).

 

(d)           Termination of Employment, Death or Disability. No Incentive Stock Option may be exercised
unless, at the time of such exercise, the optionee is, and has been continuously

 

 

since the date of grant of his or her option, employed
by the Corporation, except that, unless otherwise specified in the applicable option
agreement:

 

(i)            an Incentive Stock Option may be exercised within the period
of three months after the date the optionee ceases to be an employee of the Corporation
(or within such lesser period as may be specified in the applicable option agreement),
provided, that the agreement with respect to such option may designate a
longer exercise period and that the exercise after such three-month period shall
be treated as the exercise of a non-statutory option under the Plan;

 

(ii)           if the optionee dies while in the employ of the Corporation,
or within three months after the optionee ceases to be such an employee, the Incentive
Stock Option may be exercised by the person to whom it is transferred by will or
the laws of descent and distribution within the period of one year after the date
of death (or within such lesser period as may be specified in the applicable option
agreement); and

 

(iii)          if the optionee becomes disabled (within the meaning of
Section 22(e)(3) of the Code or any successor provisions thereto) while in the employ
of the Corporation, the Incentive Stock Option may be exercised within the period
of one year after the date the optionee ceases to be such an employee because of
such disability (or within such lesser period as may be specified in the applicable
option agreement).

 

For all purposes of the Plan and any option granted hereunder,
“employment” shall be defined in accordance with the provisions of Section 1.421-1(h)
of the Income Tax Regulations (or any successor regulations). Notwithstanding the
foregoing provisions no Incentive Stock Option may be exercised after its expiration
date.

 

12.           Restricted Shares.

 

(a)           Awards. The Board of Directors may from time to time in its discretion
award Restricted Shares to persons having a Business Relationship with the Corporation
and may determine the number of Restricted Shares awarded and the terms and conditions
of, and the amount of payment, if any, to be made by such persons. Each award of
Restricted Shares will be evidenced by a written agreement executed on behalf of
the Corporation and containing terms and conditions not inconsistent with the Plan
as the Board of Directors shall determine to be appropriate in its sole discretion.

 

(b)           Restricted Period; Lapse of Restrictions. At the time an award of Restricted Shares
is made, the Board of Directors shall establish a period of time (the “Restricted
Period”) applicable to such award which shall not be more than ten years. Each award
of Restricted Shares may have a different Restricted Period. In lieu of establishing
a Restricted Period, the Board of Directors may establish restrictions based only
on the achievement of specified performance measures or a time release schedule.
At the time an award is made, the Board of

 

 

Directors may, in its discretion, prescribe conditions
for the incremental lapse of restrictions during the Restricted Period and for the
lapse or termination of restrictions upon the occurrence of other conditions in
addition to or other than the expiration of the Restricted Period with respect to
all or any portion of the Restricted Shares. Such conditions may include, without
limitation, the death or disability of the participant to whom Restricted Shares
are awarded, retirement of the participant pursuant to normal or early retirement
under any retirement plan of the Corporation or termination by the Corporation of
the participant’s employment other than for cause, or the occurrence of a change
in control of the Corporation. Such conditions may also include performance measures,
which, in the case of any such award of Restricted Shares to a participant who is
a “covered employee” within the meaning of Section 162(m) of the Code, shall be
based on one or more of the following criteria: earnings per share, market value
per share, return on invested capital, return on operating assets and return on
equity. The Board of Directors may also, in its discretion, shorten or terminate
the Restricted Period or waive any conditions for the lapse or termination of restrictions
with respect to all or any portion of the Restricted Shares at any time after the
date the award is made.

 

(c)           Rights of Holder; Limitations Thereon. Upon an award of Restricted Shares, a stock
certificate representing the number of Restricted Shares awarded to the participant
shall be registered in the participant’s name and, at the discretion of the Board
of Directors, will be either delivered to the participant with an appropriate legend
or held in custody by the Corporation or a bank for the participant’s account. The
participant shall generally have the rights and privileges of a stockholder as to
such Restricted Shares, including the right to vote such Restricted Shares, except
that the following restrictions shall apply: (i) with respect to each Restricted
Share, the participant shall not be entitled to delivery of an unlegended certificate
until the expiration nor termination of the Restricted Period, and the satisfaction
of any other conditions prescribed by the Board of Directors, relating to such Restricted
Share; (ii) with respect to each Restricted Share, such share may not be sold, transferred,
assigned, pledged, or otherwise encumbered or disposed of until the expiration of
the Restricted Period, and the satisfaction of any other conditions prescribed by
the Board of Directors, relating to such Restricted Share (except, subject to the
provisions of the participant’s stock restriction agreement, by will or the laws
of descent and distribution or pursuant to a qualified domestic relations order
as defined by the Code or Title I of ERISA or the rules promulgated thereunder)
and (iii) all of the Restricted Shares as to which restrictions have not at the
time lapsed shall be forfeited and all rights of the participant to such Restricted
Shares shall terminate without further obligation on the part of the Corporation
unless the participant has remained in a Business Relationship with the Corporation
or any of its subsidiaries until the expiration or termination of the Restricted
Period and the satisfaction of any other conditions prescribed by the Board of Directors
applicable to such Restricted Shares. Upon the forfeiture of any Restricted Shares,
such forfeited shares shall be transferred to the Corporation without further action
by the participant. At the discretion of the Board of Directors, cash and stock
dividends with respect to the Restricted Shares may be either currently paid or
withheld by the Corporation for the participant’s account, and interest may be paid
on the amount of cash dividends withheld at a rate and subject to such terms as
determined by the Board of Directors. The participant shall have the same rights
and privileges, and be subject to the same restrictions, with respect to any shares
received pursuant to Section 16 hereof.

 

 

(d)           Delivery of Unrestricted Shares. Upon the expiration or termination of the
Restricted Period and the satisfaction of any other conditions prescribed by the
Board of Directors, the restrictions applicable to the Restricted Shares shall lapse
and a stock certificate for the number of Restricted Shares with respect to which
the restrictions have lapsed shall be delivered, free of all such restrictions,
except any that may be imposed by law including without limitation securities laws,
to the participant or the participant’s beneficiary or estate, as the case may be.
The Corporation shall not be required to deliver any fractional share of Common
Stock but will pay, in lieu thereof, the fair market value (determined as of the
date the restrictions lapse) of such fractional share to the participant or the
participant’s beneficiary or estate, as the case may be.

 

13.           Additional Provisions.

 

(a)           Additional Provisions. The Board of Directors may, in its sole
discretion, include additional provisions in option or Restricted Stock agreements
covering options or Restricted Stock granted under the Plan, including without limitation,
restrictions on transfer, repurchase rights, rights of first refusal, commitments
to pay cash bonuses, to make, arrange for or guaranty loans or to transfer other
property to optionees upon exercise of options, or such other provisions as shall
be determined by the Board of Directors; provided, that such additional provisions
shall not be inconsistent with any other term or condition of the Plan and such
additional provisions shall not cause any Incentive Stock Option granted under the
Plan to fail to qualify as an Incentive Stock Option within the meaning of Section
422 of the Code or result in the imposition of an additional tax under Section 409A
of the Code.

 

(b)           Acceleration, Extension, Etc. The Board of Directors may, in its sole
discretion, (i) accelerate the date or dates on which all or any particular option
or options granted under the Plan may be exercised or (ii) extend the dates during
which all, or any particular, option or options granted under the Plan may be exercised
if it would not cause any Incentive Stock Option granted under the Plan to fail
to qualify as an Incentive Stock Option within the meaning of Section 422 of the
Code or result in the imposition of an additional tax under Section 409A of the
Code.

 

14.           General Restrictions.

 

(a)           Investment Representations. The Corporation may require any person to
whom Restricted Shares or an option is granted, as a condition of receiving such
Restricted Shares or exercising such option, to give written assurances in substance
and form satisfactory to the Corporation to the effect that such person is acquiring
the Restricted Shares or Common Stock subject to the option for his or her own account
for investment and not with any present intention of selling or otherwise distributing
the same, and to such other effects as the Corporation deems necessary or appropriate
in order to comply with federal and applicable state securities laws, or with covenants
or representations made by the Corporation in connection with any public offering
of its Common Stock.

 

 

(b)           Compliance with Securities Law. Each option and grant of Restricted Shares
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 Restricted
Shares or shares subject to such option upon any securities exchange or under any
state or federal law, or the consent or approval of any governmental or regulatory
body, or that the disclosure of non-public information or the satisfaction of any
other condition is necessary as a condition of, or in connection with the issuance
or purchase of shares thereunder, such Restricted Shares shall not be granted and
such option may not be exercised, in whole or in part, unless such listing, registration,
qualification, consent or approval, or satisfaction of such condition shall have
been effected or obtained on conditions acceptable to the Board of Directors. Nothing
herein shall be deemed to require the Corporation to apply for or to obtain such
listing, registration or qualification, or to satisfy such condition.

 

15.           Rights as a Stockholder.

 

The holder of an option shall have no rights as a stockholder
with respect to any shares covered by the option (including, without limitation,
any rights to receive dividends or non-cash distributions with respect to such shares)
until the date of issue of a stock certificate to him or her for such shares. No
adjustment shall be made for dividends or other rights for which the record date
is prior to the date such stock certificate is issued.

 

16.           Adjustment Provisions for Recapitalization,
Reorganizations and Related Transactions.

 

(a)           Recapitalization and Related Transactions. If, through or as a result of any recapitalization,
reclassification, stock dividend, stock split, reverse stock split or other similar
transaction, (i) the outstanding shares of Common Stock are increased, decreased
or exchanged for a different number or kind of shares or other securities of the
Corporation, or (ii) additional shares or new or different shares or other non-cash
assets are distributed with respect to such shares of Common Stock or other securities,
an appropriate and proportionate adjustment shall be made in (x) the maximum number
and kind of shares reserved for issuance under the Plan, (y) the number and kind
of Restricted Shares granted and shares or other securities subject to any then
outstanding options under the Plan, and (z) the exercise price for each share subject
to any then outstanding options under the Plan, without changing the aggregate purchase
price as to which such options remain exercisable. Notwithstanding the foregoing,
no adjustment shall be made pursuant to this Section 16 if such adjustment (i) would
cause the Plan to fail to comply with Section 422 of the Code or with Rule 16b-3
or (ii) would be considered as the adoption of a new plan requiring stockholder
approval.

 

(b)           Reorganization, Merger and Related Transactions. If the Corporation shall be the surviving
corporation in any reorganization, merger or consolidation of the Corporation with
one or more other corporations, any then outstanding Restricted Shares or option
granted pursuant to the Plan shall pertain to and apply to the securities to which
a holder of the number of shares of Common Stock subject to such Restricted Shares
or options would have been entitled immediately following such reorganization, merger,
or consolidation, with a corresponding

 

 

proportionate adjustment of the purchase price as to which such options
may be exercised so that the aggregate purchase price as to which such options
may be exercised shall be the same as the aggregate purchase price as to which
such options may be exercised for the shares remaining subject to the options
immediately prior to such reorganization, merger, or consolidation.

 

(c)           Board Authority to Make Adjustments. Any
adjustments made under this Section 16 will be made by the Board of
Directors, whose determination as to what adjustments, if any, will be made and
the extent thereof will be final, binding and conclusive. No fractional shares
will be issued under the Plan on account of any such adjustments.

 

17.           Merger,
Consolidation, Asset Sale, Liquidation, Etc.

 

(a)           General. In the event of a
consolidation or merger in which the Corporation is not the surviving
corporation, or sale of all or substantially all of the assets of the
Corporation in which outstanding shares of Common Stock are exchanged for securities,
cash or other property of any other corporation or business entity or in the
event of a liquidation of the Corporation (collectively, a “Corporate
Transaction”), the Board of Directors of the Corporation, or the board of
directors of any corporation assuming the obligations of the Corporation, may,
in its discretion, take any one or more of the following actions, as to
outstanding options: (i) provide that such Restricted Shares or options
shall be assumed, or equivalent Restricted Shares or options shall be
substituted, by the acquiring or succeeding corporation (or an affiliate
thereof), provided that any such options substituted for Incentive Stock
Options shall meet the requirements of Section 424(a) of the Code,
(ii) upon written notice, provide that all unexercised options and
Restricted Shares will terminate immediately prior to the consummation of such
transaction unless such options are exercised by the optionee within a
specified period following the date of such notice, (iii) in the event of
a Corporate Transaction under the terms of which holders of the Common Stock of
the Corporation will receive upon consummation thereof a cash payment for each
share surrendered in the Corporate Transaction (the “Transaction Price”), make
or provide for a cash payment to the optionees equal to the difference between
(A) the Transaction Price times the number of shares of Common Stock
subject to such outstanding options (to the extent then exercisable at prices
not in excess of the Transaction Price) and (B) the aggregate exercise
price of all such outstanding options in exchange for the termination of such
options, and (iv) provide that all restrictions on Restricted Shares shall
lapse in full or in part and all or any outstanding options shall become exercisable
in full or in part immediately prior to such event.

 

(b)           Substitute Restricted Shares or Options. The
Corporation may grant Restricted Shares or options under the Plan in
substitution for Restricted Shares or options held by persons in a Business Relationship
with another corporation who enter into a Business Relationship with the
Corporation, or a subsidiary of the Corporation, as the result of a merger or
consolidation of the employing corporation with the Corporation or a subsidiary
of the Corporation, or as a result of the acquisition by the Corporation, or
one of its subsidiaries, of property or stock of the other corporation. The
Corporation may direct that substitute Restricted Shares or options be granted
on such terms and conditions as the Board of Directors considers appropriate in
the circumstances.

 

 

18.           No Special
Employment Rights.

 

Nothing contained in the Plan or in any Restricted
Share or option agreement shall confer upon any holder of Restricted Shares or
optionee any right with respect to the continuation of his or her employment
by, or other Business Relationship with, the Corporation or interfere in any
way with the right of the Corporation at any time to terminate such employment
or Business Relationship or to increase or decrease the compensation of the
optionee.

 

19.           Other Employee
Benefits.

 

Except as to plans which by their terms include such
amounts as compensation, the amount of any compensation deemed to be received
by an employee as a result of the grant of Restricted Shares or lapse of
restrictions thereon, the exercise of an option or the sale of shares received
upon such exercise will not constitute compensation with respect to which any
other employee benefits of such employee are determined, including, without
limitation, benefits under any bonus, pension, profit-sharing, life insurance
or salary continuation plan, except as otherwise specifically determined by the
Board of Directors.

 

20.           Amendment of
the Plan.

 

(a)           The Board of Directors may at any time, and from time
to time, modify or amend the Plan in any respect, except that if at any time
the approval of the stockholders of the Corporation is required under
Section 422 of the Code or any successor provision with respect to
Incentive Stock Options, or the legal requirements relating to the
administration of equity compensation plans, if any, under applicable
provisions of federal securities laws, applicable state corporate and
securities laws, the Code, the rules of any applicable stock exchange or
national market system or quotation system on which the Common Stock is listed
or quoted, and the applicable laws and rules of any foreign country or
jurisdiction where awards are, or will be, granted under the Plan.

 

(b)           The termination or any modification or amendment of
the Plan shall not, without the consent of an optionee or holder of Restricted
Shares, affect his or her rights under an option or grant of Restricted Shares
previously granted to him or her. With the consent of the optionee or holder of
Restricted Shares affected, the Board of Directors may amend outstanding option
or Restricted Share agreements in a manner not inconsistent with the Plan. The
Board of Directors shall have the right to amend or modify the terms and
provisions of the Plan and of any outstanding Incentive Stock Options granted
under the Plan to the extent necessary to qualify any or all such options for
such favorable federal income tax treatment (including deferral of taxation
upon exercise) as may be afforded incentive stock options under Section 422
of the Code.

 

 

21.           Withholding.

 

(a)           The Corporation shall have the right to deduct from
payments of any kind otherwise due to the optionee or holder of Restricted
Shares any federal, state or local taxes of any kind required by law to be withheld
with respect to any shares issued upon exercise of options or lapse of
restrictions on Restricted Shares under the Plan. Subject to the prior approval
of the Corporation, which may be withheld by the Corporation in its sole
discretion, the optionee or holder of Restricted Shares may elect to satisfy
such obligations, in whole or in part, (i) by causing the Corporation to
withhold shares of Common Stock otherwise issuable pursuant to the exercise of
an option or lapse of restrictions on Restricted Shares or (ii) by
delivering to the Corporation shares of Common Stock already owned by the
optionee or holder of Restricted Shares. The shares so delivered or withheld
shall have a Fair Market Value equal to such withholding obligation as of the
date that the amount of tax to be withheld is to be determined. An optionee who
has made an election pursuant to this Section 21(a) may satisfy his or her
withholding obligation only with shares of Common Stock which are not subject
to any repurchase, forfeiture, unfulfilled vesting or other similar
requirements.

 

(b)           The acceptance of shares of Common Stock upon
exercise of an Incentive Stock Option shall constitute an agreement by the
optionee (i) to notify the Corporation if any or all of such shares are
disposed of by the optionee within two years from the date the option was
granted or within one year from the date the shares were transferred to the
optionee pursuant to the exercise of the option, and (ii) if required by
law, to remit to the Corporation, at the time of and in the case of any such
disposition, an amount sufficient to satisfy the Corporation’s federal, state
and local withholding tax obligations with respect to such disposition, whether
or not, as to both (i) and (ii), the optionee is in the employ of the
Corporation at the time of such disposition.

 

(c)           Notwithstanding the foregoing, in the case of a
Reporting Person whose options have been granted in accordance with the
provisions of Section 3(b) herein, no election to use shares for the
payment of withholding taxes shall be effective unless made in compliance with
any applicable requirements of Rule 16b-3.

 

22.           Section 162(m) of
the Code. The Board of Directors, in its sole discretion,
may require that one or more agreements contain provisions which provide that,
in the event Section 162(m) of the Code, or any successor provision
relating to excessive employee remuneration, would operate to disallow a
deduction by the Corporation for all or part of any payment of an award under
the Plan, a grantee’s receipt of the portion that would not be deductible by
the Corporation shall be deferred to either the earliest date at which the
Board reasonably anticipates that the grantee’s remuneration either does not
exceed the limit set forth in Section 162(m) of the Code or is not
subject to Section 162(m) of Code, or the calendar year in which the
grantee separates from service. This Section 22 shall be applied and
construed consistently with Section 409A of the Code and the regulations
(and guidance) thereunder.

 

 

23.           Effective Date
and Duration of the Plan.

 

(a)           Effective Date. The Plan shall become
effective when adopted by the Board of Directors, but no Incentive Stock Option
granted under the Plan shall become exercisable unless and until the Plan shall
have been approved by the Corporation’s stockholders. If such stockholder
approval is not obtained within twelve (12) months after the date of the Board’s
adoption of the Plan, no options previously granted under the Plan shall be
deemed to be Incentive Stock Options and no Incentive Stock Options shall be
granted thereafter. Amendments to the Plan not requiring stockholder approval
shall become effective when adopted by the Board of Directors; amendments
requiring stockholder approval (as provided in Section 20) shall become
effective when adopted by the Board of Directors, but no Incentive Stock Option
granted after the date of such amendment shall become exercisable (to the
extent that such amendment to the Plan was required to enable the Corporation
to grant such Incentive Stock Option to a particular optionee) unless and until
such amendment shall have been approved by the Corporation’s stockholders. If
such stockholder approval is not obtained within twelve (12) months of the
Board’s adoption of such amendment, any Incentive Stock Options granted on or
after the date of such amendment shall terminate to the extent that such
amendment to the Plan was required to enable the Corporation to grant such
option to a particular optionee. Subject to this limitation, options may be
granted under the Plan at any time after the effective date and before the date
fixed for termination of the Plan.

 

(b)           Termination. Unless sooner terminated
in accordance with Section 17, the Plan shall terminate upon the earlier
of (i) the close of business on the day next preceding the tenth
anniversary of the date of its adoption by the Board of Directors, or
(ii) the date on which all shares available for issuance under the Plan
shall have been issued pursuant to the exercise or cancellation of Restricted
Shares or options granted under the Plan. If the date of termination is
determined under (i) above, then Restricted Shares or options outstanding
on such date shall continue to have force and effect in accordance with the
provisions of the instruments evidencing such Restricted Shares or options.

 

24.           Governing Law.

 

The provisions of this Plan shall be governed and
construed in accordance with the laws of the State of Nevada without regard to
the principles of conflicts of laws.

 

Adopted by the Board of Directors on March 9, 2010

 

 

First
Amendment to

American Lithium Minerals, Inc.

2010 Stock Plan

 

The 2010 Stock Plan (the “Plan”) of American Lithium
Minerals, Inc. (the “Company”) is hereby amended as follows:

 

1.             The second
sentence of Section 6(a) of the Plan is hereby deleted in its
entirety and replaced with the following:

 

“Fair Market Value” of a Share as of a specified
date for purposes of the Plan shall mean (i) if the Common Stock is
readily tradable on any established stock exchange (including, without
limitation, the Nasdaq Global Select Market, the Nasdaq Global Market or the
Nasdaq Capital Market), the OTC Bulletin Board or otherwise over-the-counter
(including, without limitation, the Pink Sheets), then the Fair Market Value per
share shall be deemed to be the average of the “high” and “low” sales prices
(or bid and ask prices, if sales prices are not reported) for the Common Stock
for the last trading day immediately preceding the date with respect to which
Fair Market Value is being determined, as reported for the principal trading
market for the Common Stock, or if there is no volume in the Common Stock on
such trading day, then the sales prices (or bids) shall be those sales prices
(or bids) on the preceding trading day in which there was volume in the Common
Stock; and (ii) if the Common Stock is not readily tradable on an
established stock exchange or otherwise cannot be determined in accordance with
subsection (i), the Fair Market Value per Share shall be deemed to be an amount
as determined in good faith by the Board of Directors or the Committee (as
applicable) by applying any reasonable valuation method, which may be an
independent third party valuation; provided, that any such determination shall
be made in compliance with the regulations under Code Section 409A.

 

2.             Except as
provided above, the Plan shall remain unchanged and in full force and effect.

 

I hereby certify that the foregoing Amendment was duly adopted and
approved by the Board of Directors of the Company on May 17, 2010 in
accordance with the terms of the Plan.

 

	
  /s/ Ann Dumyn

  	
   

  
	
  Ann Dumyn, Secretary

  	
   

  
	
  American Lithium
  Minerals, Inc.

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