Document:

Exhibit 10.6

 

GROSS ROYALTY AGREEMENT

 

THIS AGREEMENT made as of
the 1st day of October 2007.

 

BETWEEN:

 

DAVID Q.
TOGNONI of Elephant Butte, New Mexico (hereinafter referred to as the “Royaltyholder”)

 

- and -

 

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

 

WHEREAS the Royaltypayor has on this day
acquired a 100% interest in the Property;

 

AND WHEREAS part of the compensation of the
Royaltyholder, for his services, is the grant of the royalty provided for in
this agreement (the “Royalty”);

 

AND WHEREAS capitalized words and expressions
shall have the meanings set forth in Article 3 of this agreement;

 

THIS AGREEMENT WITNESSES THAT, in
consideration of the premises and the respective covenants and agreements
hereinafter set forth in this agreement and other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged),
the parties do covenant and agree with one another as follows:

 

ARTICLE
1  OBLIGATION

 

1.1                                 If the Royaltyholder becomes
entitled to any payments under this agreement, the Royaltypayor shall
calculate, as at the end of each calendar quarter subsequent to the Completion
Date, the Gross Profits in accordance with generally accepted accounting principles
consistently applied in the United States.

 

1.2                                 Subsequent to the Completion
Date, the Royaltypayor shall within 60 days of the end of each calendar
quarter in which the Royaltypayor is in receipt of any Gross Receipts:

 

(a)                                  deliver to the
Royaltyholder a statement indicating:

 

(i)                                     the Gross
Receipts during the calendar quarter;

 

(ii)                                  the deductions
therefrom made in the order itemized in §2.1 of this agreement;

 

(iii)                               the amount of
Gross Profits remaining, if any; and

 

(iv)                              the amount of
those Gross Profits, if any, to which the Royaltyholder is entitled; and

 

(b)                                 pay or cause to
be paid to the Royaltyholder that amount equal to 1% of the Gross Profits, if
any.

 

1.3                                 If at any time after the
date of this agreement any party or an affiliate of any party (the “Acquiring Party”) stakes or otherwise
acquires, directly or indirectly, any right to or interest in any mining claim,
licence, lease, grant, concession, permit, patent, or other mineral property
(the “Acquired Properties”)
located wholly within three miles of the boundary of each mining lease and
claim comprising the Property (the “Area of
Interest”), the Acquired Properties shall be subject to the Royalty
and, notwithstanding any other provisions of this agreement, all amounts to be
calculated under this agreement shall relate to the Property and Acquired
Properties, and Exploration Costs shall include the costs of acquisition of the
Acquired Properties. Notwithstanding the foregoing, a particular Acquired
Property shall not be subject to the Royalty if the Acquired Property was
acquired from a third party (and not through staking) and the Acquired Property
is already subject to a royalty interest other than to a government entity.

 

 

1.4                                 The parties intend that the
Royalty, to the extent permissible under applicable laws, constitutes an
interest in the Property and, accordingly agree that the Royalty will run with
and be binding upon title to the Property and binding upon the successor in
title to the Property. Nothing herein is to be construed however to limit or
restrict the ability of the Royaltypayor to sell the Property or any portion
thereof at any time and in its complete discretion.

 

ARTICLE
2  GROSS PROFITS DEFINED

 

2.1                                 “Gross Profits” means the Gross Receipts minus deductions
therefrom, to the extent of but not exceeding the amount of those Gross
Receipts, of the then net unrecovered amounts of Costs, with Costs to be
deducted in the following order:

 

(a)                                  Marketing
Costs;

 

(b)                                 Distribution
Costs; and

 

(c)                                  Taxes and
Royalties.

 

2.2                                 For greater certainty, in
calculating Gross Profits at any time, each of the classes of Costs shall
constitute a separate pool from which all Costs deducted on any previous
quarterly calculation shall be removed and to which Costs of those classes
recorded since the date of this agreement (in the case of the first quarterly
calculation) or since the date of the last quarterly calculation (in the case
of any calculation subsequent to the first quarterly calculation) shall be
added.

 

2.3                                 If the application of
credits to a pool of Costs results in a negative balance in that pool of Costs,
the amount of any negative balance from a Cost pool shall be applied to reduce
the balances then remaining in pools itemized in §2.1 of this agreement in the
order itemized.

 

ARTICLE 3  DEFINITIONS

 

3.1                                 In this agreement, including
the recitals hereof, the following words and expressions shall have the
following meanings, except where the context otherwise necessarily requires:

 

(a)                                  “Completion Date” means the date on which
the Royaltypayor determines that the project of preparing and equipping a Mine
for commercial production is complete;

 

(b)                                 “Costs” means the following items of outlay
and expenses, with respect to the Property or any Mine recorded by the
Royaltypayor in accordance with its accounting practices applicable from time
to time:

 

(i)                                     “Distribution Costs” which means all Costs
of

 

(1)                                  transporting
Products from a Mine or a concentrating plant to a smelter, refinery or other
place of delivery designated by the purchaser and, in the case of concentrates
tolled, of transporting the metal from a smelter to the place of delivery
designated by the purchaser; and

 

(2)                                  handling,
warehousing and insuring the Products; and

 

(3)                                  in the case of
concentrates tolled, of smelting and refining, including any penalties thereon
or in connection therewith;

 

(ii)                                  “Marketing Costs” which means such
reasonable charge for marketing of ores and concentrates sold or of
concentrates tolled as is consistent with generally accepted industry marketing
practices;

 

2

 

(iii)                               “Taxes and Royalties” which means all taxes
(other than income taxes), royalties (other than the Net Profit Royalty) or
other charges or imposts provided for pursuant to any law or legal obligation
imposed by any government if paid by the Royaltypayor;

 

(c)                                  “Gross Receipts” means the aggregate of all
receipts, recoveries or amounts received by or credited to the Royaltypayor in
connection with this agreement including, without limiting the generality of
the foregoing, all the receipts from the sale of the Royaltypayor’s
proportionate share of Products produced from the Mine;

 

(d)                                 “Mine” means the workings established and
assets acquired in order to bring the Property or a portion thereof into
commercial production, including, without limiting the generality of the
foregoing, development headings, plant and concentrator installations and all
infrastructure, plant, housing, airport, roads and other facilities;

 

(e)                                  “Net Profit Royalty” means that royalty of 20%
of net profits payable to Great Western Exploration, LLC, South West
Exploration, LLC, Bethany Resources, LLC and Stewart Jackson pursuant
to the NPR Royalty Agreements dated October 1, 2007, between BE
Resources Inc., on the one hand, and Great Western Exploration, LLC,
South West Exploration, LLC, Bethany Resources, LLC and Stewart
Jackson, on the other;

 

(f)                                    “Products” shall mean ores, concentrates and
minerals mined from the Property, or solutions, concentrates or cathodes
retrieved through leaching or solution mining or solution
extraction/electrowinning or other processing of mineralized material mined
from the Property;

 

(g)                                 “Property” shall mean mining leases and
claims in Socorro County and Sierra County, New Mexico set forth in Schedule A
and any of the Acquired Properties; and

 

(h)                                 “Trading Activities” shall have the meaning
set out in §6 of this agreement.

 

ARTICLE
4  ROYALTYPAYOR TO DETERMINE OPERATIONS

 

4.1                                 The Royaltypayor will have
complete discretion concerning the nature, timing and extent of all
exploration, development, mining and other operations conducted on or for the
benefit of the Property and may suspend operations and production on the
Property at any time it considers prudent or appropriate to do so. The
Royaltypayor will owe the Royaltyholder no duty to explore, develop or mine the
Property or to do so at any rate or in any manner other than that which the
Royaltypayor may determine in its sole and unfettered discretion. The
Royaltypayor may, but will not be obligated to treat, mill, heap leach, sort,
concentrate, refine, smelt or otherwise process, beneficiate or upgrade the
ores, concentrates and other products at sites located on or off the Property,
prior to sale, transfer or conveyance to a purchaser, user or consumer. The
Royaltypayor will not be liable for mineral values lost in processing under
sound practices and procedures, and no royalty will be due on any such lost
mineral values.

 

ARTICLE
5  COMMINGLING

 

5.1                                 Ores, concentrates and
derivatives mined or retrieved from the Property may be commingled with ores,
concentrates or derivatives mined or retrieved from other properties. All
determinations required for calculation of Gross Profits, including without
limitation the amount of the metals contained in or recovered from ores,
solutions, concentrates or derivatives mined or retrieved from the Property,
the amount of the metals contained in or recovered from commingled ores,
solutions, concentrates or derivatives, gross revenues from the sale of
Products, and costs and expenses allocated to the Property or Products shall be
made in accordance with prudent weighing, sampling, assaying, engineering,
metallurgical and cost accounting practices.

 

3

 

ARTICLE
6  TRADING ACTIVITIES

 

6.1                                 The Royaltypayor may, but
need not, engage in forward sales, futures trading or commodity options
trading, and other price hedging, price protection and speculative arrangements
(“Trading Activities”) which may
involve the possible delivery of base or precious metals produced from the
Property. The parties acknowledge and agree that the Royaltyholder shall not be
entitled to participate in the proceeds or be obligated to share in any losses
generated by the Trading Activities.

 

6.2                                 The Royaltypayor may retain
any base or precious metals produced from the Property in which case the value
of such retained metals shall be added to the Gross Receipts. The value of such
metals shall be determined, in the case of gold or silver, by taking the average
London Bullion Brokers PM fixing price for the calendar quarter of production
or for other metals the average spot price of the New York Commodities Exchange
final daily spot price for the applicable metal for the calendar quarter of
production for the applicable metal.

 

ARTICLE
7  ADJUSTMENTS AND VERIFICATION

 

7.1                                 Payment of any Gross Profits
by the Royaltypayor shall not prejudice the right of the Royaltypayor to adjust
the statement supporting the payment; provided, however, that all statements
presented to the Royaltyholder by the Royaltypayor for any quarter shall
conclusively be presumed to be true and correct upon the expiration of
12 months following the end of the quarter to which the statement relates,
unless within that 12 month period the Royaltypayor gives notice to the
Royaltyholder making claim on the Royaltyholder for an adjustment to the
statement which will be reflected in subsequent payment of Gross Profits as
settled.

 

7.2                                 The Royaltypayor shall not
adjust any statement in favour of itself after the expiration of 12 months
following the end of the quarter to which the statement relates.

 

7.3                                 The Royaltyholder may from
time to time request reasonable supporting documentation for statements that
are within the period contemplated in §7.1 and the Royaltypayor, acting in good
faith, shall provide the same promptly to the Royaltyholder.

 

7.4                                 If the supporting
documentation and any discussion with the Royaltypayor do not resolve the
Royaltyholder’s concerns, the Royaltyholder shall be entitled upon notice to
the Royaltypayor to request from the Royaltypayor that mutually acceptable
auditors be requested to provide the Royaltyholder with their opinion that any
statement delivered pursuant to §1.2 of this agreement in respect of any
quarterly period falling within the 12 month period immediately preceding
the date of the Royaltyholder’s notice has been prepared in accordance with
this agreement. When giving any notice aforesaid, the Royaltyholder will
articulate the matter or matters of concern to it. Within 45 days from the
date the auditors are provided with the Royaltyholder’s notice, the auditors
shall provide a written statement to the parties setting forth the auditors’
opinion with respect the matter or matters of concern as described in the
Royaltyholder’s notice. The audit opinion provided by the auditors shall be
conclusive and legally binding upon the parties.

 

7.5                                 The time required for giving
the audit opinion contemplated in §7.4 of this agreement shall not extend the
time for the taking of exception to and making claim on the Royaltyholder for
adjustment as provided in §7.1 of this agreement.

 

7.6                                 The cost of the audit
opinion requested pursuant to §7.4 of this agreement shall be solely for the
account of the Royaltyholder unless the audit opinion reveals an error which is
adverse to the Royaltyholder of greater than 3% in which case the cost of the
audit opinion shall be solely for the account of the Royaltypayor.

 

4

 

7.7                                 The provisions of §7.4 are
intended to provide an effective mechanism for the Royaltyholder to resolve its
unresolved concerns regarding Gross Profits accounting and not to effect a
regular audit of the Gross Profits calculation.

 

ARTICLE
8  BUYDOWN AND RIGHT OF FIRST REFUSAL

 

8.1                                 The Royaltypayor shall have
the right at any time by providing written notice to the Royaltyholder to
purchase up to one-half or some other lesser fraction of the Royalty at the
fair market value thereof (as of the last day of the last calendar quarter
prior to the date on which the written notice is sent by the Royaltyholder) as
determined by an independent business valuator retained by the Royaltypayor.
The purchase and sale of the Royalty interest under this section shall be
completed on that date which is 90 days following the date on which notice
is sent by the Royaltypayor.

 

8.2                                 The Royaltypayor shall have
a right of first refusal to acquire the Royalty. If the Royaltyholder wishes to
dispose of the Royalty or any portion thereof, the Royaltyholder must first
offer to sell it to the Royaltypayor for a price and on terms which the
Royaltyholder establishes including the financial value of any non cash
consideration specified. The Royaltyholder will provide the Royaltypayor with a
written notice setting out the terms of the proposed sale (the “Notice”) and the Royaltypayor will have
90 days following receipt of the Notice to advise the Royaltyholder if the
Royaltypayor wishes to acquire the offered interest. If the Royaltypayor does
not exercise its right of first refusal, the Royaltyholder shall then have
180 days to dispose of the Royalty or the specified portion thereof to a
third party for the same or greater price and on the same term or terms no more
favourable to the third party. The right of first refusal shall not apply to a
transfer by the Royaltyholder to affiliated corporations provided such a
corporation remains so for at least three years.

 

ARTICLE
9  GENERAL

 

9.1                                 This agreement shall be
governed by and construed in accordance with the laws of the State of New
Mexico, and each of the parties submits to the jurisdiction of the courts of
the State of New Mexico for the resolution of any dispute or controversy
arising in connection herewith.

 

9.2                                 Any notice or other
communication required or permitted to be given hereunder shall be in writing
and shall be: (i) delivered by courier, or (ii) sent by registered
mail (postage prepaid), unless there is a postal strike then in progress; or (iii) transmitted
by facsimile transmission (but only if a fax number is provided below for the
party in question), addressed or sent as follows:

 

(i)                                     if to the
Royaltyholder:

 

107 Hackney Circle

Box 684

Elephant Butte, NM

87935

 

Facsimile: 505-744-5801

 

(ii)                                  if to the
Royaltypayor:

 

107 Hackney Circle

Box 684

Elephant Butte, NM

87935

Attention: David Q. Tognoni

Facsimile: 505-744-5801

 

(a)                                  any such notice
or other communication shall be deemed to have been given and received: (i) if
delivered by courier, on the day on which it is so delivered; (ii) if sent
by registered mail, on the

 

5

 

10th day after posting,
but if there shall be any intervening postal strike, then on the 10th day
after the end of such postal strike; and (iii) if transmitted by facsimile
transmission, on the next business day (in the city where the recipient of the
facsimile transmission resides) after the day of successful transmission.

 

(b)                                 any party may
at any time change its address for service from time to time by giving notice
to the other parties in accordance with this Section.

 

9.3                                 Except as expressly provided
in this agreement, this agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof and supersedes and replaces
all prior agreements, understandings, negotiations and discussions, whether
written or oral. There are no warranties, conditions or representations
(including any that may be implied by statute) and there is no agreement in
connection with such subject matter, except as specifically set forth or
referred to in this agreement.

 

9.4                                 No amendment, modification
or waiver of any provision of this agreement shall be binding on any party
unless consented to in writing by such party. No waiver of any provision of
this agreement shall constitute a waiver of any other provision, nor shall any
waiver constitute a continuing waiver unless otherwise expressly provided.

 

9.5                                 Time shall be of the essence
of this agreement.

 

9.6                                 If any provision of this
agreement is determined to be invalid or unenforceable by an arbitrator or a
court of competent jurisdiction from which no further appeal lies or is taken,
that provision shall be deemed to be severed, and the remaining provisions of
this agreement shall not be affected thereby and shall remain valid and
enforceable.

 

9.7                                 The Royaltyholder
acknowledges that it has had the opportunity to obtain legal representation in
connection with this agreement. Any rule of construction to the effect
that any ambiguity is to be resolved against the drafting party shall not be
applicable in the interpretation of this agreement. The parties further
acknowledge to each other that they have each entered into the transactions
herein contemplated voluntarily, and without duress or undue pressure from any
other party.

 

9.8                                 This agreement shall enure
to the benefit of and shall be binding on and enforceable by the parties and,
where the context so permits, their respective successors and permitted
assigns. This agreement may not be assigned by the Royaltyholder without (a) the
prior written consent of the Royaltypayor, and (b) the execution by the
assignee of an agreement agreeing to be bound by and subject to the terms set
forth in this agreement.

 

9.9                                 If any day on or before
which any action is required to be taken under this agreement is not a Business
Day, such action shall be required to be taken on the next succeeding day that
is a Business Day. “Business Day”
means any day except Saturday, Sunday or a statutory holiday in the State of
Colorado.

 

6

 

IN WITNESS WHEREOF the parties have duly
executed and delivered this agreement effective as of the date first above
written.

 

	
   

  	
  ROYALTYHOLDER:

  
	
   

  	
   

  
	
   

  	
  /s/ DAVID Q. TOGNONI 

  
	
   

  	
  DAVID Q. TOGNONI

  
	
   

  	
   

  
	
   

  	
  ROYALTYPAYOR:

  
	
   

  	
   

  
	
   

  	
  BE RESOURCES INC.

  
	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ ED GODIN 

  
	
   

  	
   

  	
  Authorized Signatory

  

 

7

 

SCHEDULE A

 

MINERAL INTERESTS

 

The mining leases include:

 

State of New Mexico lease
number HG 0059, HG 0060 and HG 0061

Mining lease dated January 2,
2004 between David Q. Tognoni as leasee, and Kenneth Alan Sullivan and
Cherrill L. Sullivan as lessor, as assigned by David Q. Tognoni to Great
Western Exploration, LLC on February 3, 2004 (the “Sullivan Lease”)

 

The mining claims include:

 

The following mining claims
located in Sections 3, 27 and 34, Township 10 South, Range 8
West, N.M.P.M, Sierra County New Mexico:

 

	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  
	
  Bertrandite #34

  	
   

  	
  170506

  	
   

  	
  100

  	
   

  	
  2116

  	
   

  
	
  Bertrandite #35

  	
   

  	
  170507

  	
   

  	
  100

  	
   

  	
  2117

  	
   

  
	
  Bertrandite #54

  	
   

  	
  170602

  	
   

  	
  100

  	
   

  	
  3317

  	
   

  
	
  Bertrandite #65

  	
   

  	
  170792

  	
   

  	
  101

  	
   

  	
  625

  	
   

  
	
  Bertrandite #66

  	
   

  	
  170793

  	
   

  	
  101

  	
   

  	
  626

  	
   

  
	
  Bertrandite #67

  	
   

  	
  170794

  	
   

  	
  101

  	
   

  	
  627

  	
   

  

 

	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  
	
  Berts Clay #92

  	
   

  	
  173538

  	
   

  	
  105

  	
   

  	
  45

  	
   

  
	
  Berts Clay #93

  	
   

  	
  173539

  	
   

  	
  105

  	
   

  	
  44

  	
   

  

 

AND

 

The following mining claims
located in Sections 6, 13, 14, 15, 20, 21, 22, 24, 26, 27, 28, 33 and 34,
Township 9 South, Range 8 West, N.M.P.M., Socorro County, New Mexico:

 

	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  
	
  Bert #1

  	
   

  	
  171160

  	
   

  	
  511

  	
   

  	
  783

  	
   

  	
  Bert #2

  	
   

  	
  171161

  	
   

  	
  511

  	
   

  	
  784

  	
   

  
	
  Bert #3

  	
   

  	
  171162

  	
   

  	
  511

  	
   

  	
  785

  	
   

  	
  Bert #4

  	
   

  	
  171163

  	
   

  	
  511

  	
   

  	
  786

  	
   

  
	
  Bert #5

  	
   

  	
  171164

  	
   

  	
  511

  	
   

  	
  787

  	
   

  	
  Bert #6

  	
   

  	
  171165

  	
   

  	
  511

  	
   

  	
  788

  	
   

  
	
  Bert #7

  	
   

  	
  171166

  	
   

  	
  511

  	
   

  	
  789

  	
   

  	
  Bert #8

  	
   

  	
  171167

  	
   

  	
  511

  	
   

  	
  790

  	
   

  
	
  Bert #9

  	
   

  	
  171168

  	
   

  	
  511

  	
   

  	
  791

  	
   

  	
  Bert #10

  	
   

  	
  171169

  	
   

  	
  511

  	
   

  	
  792

  	
   

  
	
  Bert #11

  	
   

  	
  171170

  	
   

  	
  511

  	
   

  	
  793

  	
   

  	
  Bert #12

  	
   

  	
  171171

  	
   

  	
  511

  	
   

  	
  794

  	
   

  

 

	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  
	
  Special Clay #100

  	
   

  	
  171152

  	
   

  	
  511

  	
   

  	
  1938

  	
   

  	
  Special Clay #101

  	
   

  	
  171153

  	
   

  	
  511

  	
   

  	
  1939

  	
   

  
	
  Special Clay #102

  	
   

  	
  171154

  	
   

  	
  511

  	
   

  	
  1940

  	
   

  	
  Special Clay #103

  	
   

  	
  171155

  	
   

  	
  511

  	
   

  	
  1941

  	
   

  
	
  Special Clay #104

  	
   

  	
  171156

  	
   

  	
  511

  	
   

  	
  1942

  	
   

  	
  Special Clay #105

  	
   

  	
  171157

  	
   

  	
  511

  	
   

  	
  1943

  	
   

  
	
  Special Clay #106

  	
   

  	
  171158

  	
   

  	
  511

  	
   

  	
  1944

  	
   

  	
  Special Clay #107

  	
   

  	
  171159

  	
   

  	
  511

  	
   

  	
  1945

  	
   

  

 

8

 

	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Instrument #

  	
   

  	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Instrument #

  	
   

  
	
  Berts Clay #1

  	
   

  	
  173447

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #2

  	
   

  	
  173448

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #3

  	
   

  	
  173449

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #4

  	
   

  	
  173450

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #5

  	
   

  	
  173451

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #6

  	
   

  	
  173452

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #7

  	
   

  	
  173453

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #8

  	
   

  	
  173454

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #9

  	
   

  	
  173455

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #10

  	
   

  	
  173456

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #11

  	
   

  	
  173457

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #13

  	
   

  	
  173459

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #14

  	
   

  	
  173460

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #15

  	
   

  	
  173461

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #16

  	
   

  	
  173462

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #17

  	
   

  	
  173463

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #18

  	
   

  	
  173464

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #19

  	
   

  	
  173465

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #21

  	
   

  	
  173467

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #22

  	
   

  	
  173468

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #23

  	
   

  	
  173469

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #24

  	
   

  	
  173470

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #25

  	
   

  	
  173471

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #26

  	
   

  	
  173472

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #27

  	
   

  	
  173473

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #28

  	
   

  	
  173474

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #29

  	
   

  	
  173475

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #30

  	
   

  	
  173476

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #31

  	
   

  	
  173477

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #33

  	
   

  	
  173479

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #34

  	
   

  	
  173480

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #35

  	
   

  	
  173481

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #36

  	
   

  	
  173482

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #37

  	
   

  	
  173483

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #38

  	
   

  	
  173484

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #39

  	
   

  	
  173485

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #40

  	
   

  	
  173486

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #42

  	
   

  	
  173488

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #43

  	
   

  	
  173489

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #44

  	
   

  	
  173490

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #45

  	
   

  	
  173491

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #46

  	
   

  	
  173492

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #47

  	
   

  	
  173493

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #48

  	
   

  	
  173494

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #49

  	
   

  	
  173495

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #50

  	
   

  	
  173496

  	
   

  	
  200576333

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Instrument #

  	
   

  	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Instrument #

  	
   

  
	
  Berts Clay #51

  	
   

  	
  173497

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #52

  	
   

  	
  173498

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #53

  	
   

  	
  173499

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #54

  	
   

  	
  173500

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #55

  	
   

  	
  173501

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #56

  	
   

  	
  173502

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #57

  	
   

  	
  173503

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #58

  	
   

  	
  173504

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #59

  	
   

  	
  173505

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #60

  	
   

  	
  173506

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #61

  	
   

  	
  173507

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #62

  	
   

  	
  173508

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #63

  	
   

  	
  173509

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #64

  	
   

  	
  173510

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #65

  	
   

  	
  173511

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #66

  	
   

  	
  173512

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #67

  	
   

  	
  173513

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #68

  	
   

  	
  173514

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #69

  	
   

  	
  173515

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #70

  	
   

  	
  173516

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #71

  	
   

  	
  173517

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #72

  	
   

  	
  173518

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #73

  	
   

  	
  173519

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #74

  	
   

  	
  173520

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #75

  	
   

  	
  173521

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #76

  	
   

  	
  173522

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #77

  	
   

  	
  173523

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #78

  	
   

  	
  173524

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #79

  	
   

  	
  173525

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #80

  	
   

  	
  173526

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #81

  	
   

  	
  173527

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #82

  	
   

  	
  173528

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #83

  	
   

  	
  173529

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #84

  	
   

  	
  173530

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #85

  	
   

  	
  173531

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #86

  	
   

  	
  173532

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #87

  	
   

  	
  173533

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #88

  	
   

  	
  173534

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #89

  	
   

  	
  173535

  	
   

  	
  200576333

  	
   

  	
  Berts Clay #90

  	
   

  	
  173536

  	
   

  	
  200576333

  	
   

  
	
  Berts Clay #91

  	
   

  	
  173537

  	
   

  	
  200576333

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

9

 

	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  	
  Claim Name

  	
   

  	
  NMMC

  	
   

  	
  Book

  	
   

  	
  Page

  	
   

  
	
  Bertrandite #9

  	
   

  	
  170487

  	
   

  	
  508

  	
   

  	
  1583

  	
   

  	
  Bertrandite #30

  	
   

  	
  170468

  	
   

  	
  508

  	
   

  	
  1580

  	
   

  
	
  Bertrandite #10

  	
   

  	
  170486

  	
   

  	
  508

  	
   

  	
  1584

  	
   

  	
  Bertrandite #31

  	
   

  	
  170467

  	
   

  	
  508

  	
   

  	
  1581

  	
   

  
	
  Bertrandite #11

  	
   

  	
  170485

  	
   

  	
  508

  	
   

  	
  1585

  	
   

  	
  Bertrandite #39

  	
   

  	
  170511

  	
   

  	
  508

  	
   

  	
  5046

  	
   

  
	
  Bertrandite #12

  	
   

  	
  170484

  	
   

  	
  508

  	
   

  	
  1586

  	
   

  	
  Bertrandite #41

  	
   

  	
  170513

  	
   

  	
  508

  	
   

  	
  5048

  	
   

  
	
  Bertrandite #15

  	
   

  	
  170481

  	
   

  	
  508

  	
   

  	
  1567

  	
   

  	
  Bertrandite #45

  	
   

  	
  170515

  	
   

  	
  508

  	
   

  	
  5050

  	
   

  
	
  Bertrandite #18

  	
   

  	
  170478

  	
   

  	
  508

  	
   

  	
  1570

  	
   

  	
  Bertrandite #56

  	
   

  	
  170598

  	
   

  	
  509

  	
   

  	
  1692

  	
   

  
	
  Bertrandite #21

  	
   

  	
  169878

  	
   

  	
  504

  	
   

  	
  1845

  	
   

  	
  Bertrandite #57

  	
   

  	
  170597

  	
   

  	
  509

  	
   

  	
  1691

  	
   

  
	
  Bertrandite #22

  	
   

  	
  170475

  	
   

  	
  508

  	
   

  	
  1573

  	
   

  	
  Bertrandite #58

  	
   

  	
  170596

  	
   

  	
  509

  	
   

  	
  1690

  	
   

  
	
  Bertrandite #25

  	
   

  	
  170472

  	
   

  	
  508

  	
   

  	
  1576

  	
   

  	
  Bertrandite #59

  	
   

  	
  170595

  	
   

  	
  509

  	
   

  	
  1689

  	
   

  
	
  Bertrandite #26

  	
   

  	
  170471

  	
   

  	
  508

  	
   

  	
  1577

  	
   

  	
  Bertrandite #64

  	
   

  	
  170590

  	
   

  	
  509

  	
   

  	
  1684

  	
   

  
	
  Bertrandite #29

  	
   

  	
  170608

  	
   

  	
  509

  	
   

  	
  2469

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

10Exhibit 10.7

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(the “Agreement”) is made effective as of December 1, 2007 (the “Effective
Date”), by and between BE Resources Inc., a Colorado corporation (the “Company”)
and David Q. Tognoni, an individual (“Employee”).

 

R E C I T A L S

 

WHEREAS, the Company wishes
to retain the Employee to provide services as President and Chief Executive
Officer of the Company, and the Employee wishes to be retained by the Company;
and

 

WHEREAS, the Company desires
to employ Employee from the Effective Date, and Employee is willing to be
employed by Company, on the terms and subject to the conditions set forth in
this Agreement.

 

NOW THEREFORE in
consideration of the mutual covenants and promises of the parties, the Company
and Employee covenant and agree as follows:

 

1.                                      Employment; Duties. 
During the Term of this Agreement, as defined in Section 3.1,
Employee will be employed by the Company to serve as the Chief Executive
Officer and President of the Company. Employee shall report to the Board of
Directors of the Company (the “Board”), and have such general charge and
control of the Company’s business and affairs and shall have all powers and
duties incident and customary to the offices of Chief Executive Officer and
President and such other responsibilities and authority as the Board may assign
from time to time.

 

1.1                               Employee shall
perform all duties and exercise all authority in accordance with, and otherwise
comply with, all Company policies, procedures, practices and directions.

 

1.2                               Employee shall
devote sufficient time and reasonable best efforts to successfully perform his
duties and advance the Company’s interests, including but not limited to
participating in local civic engagements. During the Term (as herein defined in
Section 3), it is understood that Employee may render services to third
parties which would not materially conflict with Employee’s obligations
hereunder, and for which Employee may receive compensation. Should Employee be
appointed or elected to serve as a director, officer or member of any
professional, charitable and civic organizations, Employee agrees to inform the
Board upon the Employee being appointed or elected to any such director,
officer, or membership position. Nothing in this Section 1.3 shall
prohibit Employee from personally owning and trading in stocks, bonds,
securities, real estate, commodities or other investment properties for
Employee’s own benefit, or the benefit of Employee’s family, which do not
create conflicts of interest with the Company.

 

1.3                               The parties
agree that Employee shall perform his duties primarily at the Company’s
principal office located at 107 Hackney Circle, Elephant Butte, New Mexico or
at other such location as approved by the Board. Employee agrees that any relocation
approved by the Board will not be considered a modification of this Agreement
and will not be subject to Section 8.2.

 

2.                                      Salary, Benefits and Other Compensation.

 

2.1                               Base Salary.  As payment
for the services to be rendered by Employee as provided in Section 1 and
subject to the terms and conditions of Section 3, Company agrees to pay to
Employee a “Base Salary,” payable in equal monthly installments in accordance
with the Company’s regular payroll cycle. The Base Salary payable to Employee
under this Section will be $120,000 per annum. Employee will be entitled
to periodic performance reviews by the Board during the Term of this Agreement.
The Board may elect to increase the Base Salary by such amounts as the Board
deems appropriate.

 

1

 

2.2                               Bonus.  During the
Term of this Agreement, Employee will be eligible to participate in all bonus
and incentive plans established by the Board in accordance with the terms of
those plans including, without limitation, all stock and equity incentive
plans.

 

2.3                               Withholding of Taxes.  Employee understands that the services to be
rendered by Employee under this Agreement will cause Employee to recognize
taxable income, which is considered under the Internal Revenue Code of 1986, as
amended and applicable regulations thereunder (the “Code”), as compensation
income subject to the withholding of income tax (and Social Security or other
employment taxes). Employee hereby consents to the withholding of such taxes as
are required by law.

 

2.4                               Vacation.  During the
Term of this Agreement, Employee will be entitled to four (4) weeks paid
vacation time per year. Employee agrees to use reasonable efforts in scheduling
vacations so as to not unreasonably interfere with the business of the Company.
In the event the Employee does not take all the vacation time to which he is
entitled in any year, the Employee shall not be entitled to carry over such
vacation entitlement to any subsequent year. In addition, the Employee shall be
entitled to paid holidays for federally-recognized holiday celebrated in the
United States.

 

2.5                               Expenses.  During the
Term of this Agreement, the Company will promptly reimburse Employee for
Employee’s reasonable out-of-pocket expenses incurred in connection with
Company business provided that Employee submits evidence of such expenses to
the Company on a monthly basis in accordance with Company policy. Such
reasonable out-of-pocket expenses shall be exclusive of expenses concerning
office space used by the Employee and all overhead costs associated therewith
as such expenses are paid by the Company pursuant to the Office Allowance
discussed in this Section 2.5.

 

In addition to the Employee’s
reasonable out-of-pocket expenses the Company shall provide a flat fee allowance
of $7,500 per month (the “Office Allowance”) which is intended to cover the
cost of office space used by the Employee and all overhead costs associated
therewith. Employee shall not be required to provide evidence of expenses
concerning the Office Allowance and the Office Allowance shall be paid by the
Company to the Employee regardless of the actual amount incurred by the
Employee. Employee shall be responsible for all costs of office space and all
overhead costs associated therewith to the extent such expenses exceed $7,500
in any given month.

 

3.                                      Term of Employment.

 

Term.  The term of employment of Employee by the
Company will commence on the Effective Date and will extend through the period
ending on December 31, 2008, unless earlier terminated pursuant to this Section 3
(“Initial Term”). Upon the expiration of the Initial Term, the Term of Employee’s
employment may be renewed with the consent of both parties. During any Renewal
Term of employment, the terms, conditions and provisions set forth in this
Agreement shall remain in effect unless modified in accordance with this
Agreement.

 

3.2                               Termination Without Cause.  The Company may terminate Employee’s
employment for any reason at any time (“Termination without Cause”) upon giving
him thirty (30) days notice. The Company’s non-renewal of this Agreement
under Section 3.1 shall be considered a Termination Without Cause.

 

3.3                               Termination With Cause.  The Company may terminate Employee’s
employment immediately without notice at any time (“Termination with Cause”)
for the reasons set forth below:

 

(i)                                     Employee’s
dishonesty that relates to the discharge of his duties and responsibilities,
fraud, or breach of Employee’s fiduciary duty;

 

(ii)                                  Employee’s
material breach of this Agreement, including without limitation action that
constitutes a breach of Section 5 of this Agreement, or Employee’s failure
to substantially comply with the directions of the Board, which is not cured
within thirty (30) days after receipt of a written notice thereof given by
the Company;

 

2

 

(iii)                               Employee’s
repeated or gross negligence or intentional misconduct with respect to the
performance of Employee’s duties under this Agreement; or

 

(iv)                              Employee being
convicted of, or Employee’s entering of a guilty plea or plea of no contest to,
a felony or any other crime to which imprisonment is a possible punishment.

 

3.4                               Termination for Good Reason.  Employee may terminate his employment (“Termination
for Good Reason”) for one of the following reasons by providing thirty
(30) days written notice to the Company:

 

(i)                                     a material
reduction, without the consent of Employee, by the Company in Employee’s Base
Salary or overall benefit package then in effect;

 

(ii)                                  the Company
materially breaches the terms of this Agreement;

 

(iii)                               a material
diminution, without Employee’s consent, of Employee’s job title, reporting
relationship, job duties, responsibilities or requirements that are
inconsistent with the position or positions listed in Section 1;

 

(iv)                              the Company
fails to obtain a written agreement from any successor of the Company to assume
and perform this Agreement.

 

Paragraph 3.4 shall not apply if the
Company remedies the action within thirty (30) days of receipt of notice
thereof given by Employee.

 

3.5                               Resignation.  Employee may
terminate his employment under this Agreement for any reason (“Resignation”) by
providing written notice thirty (30) days in advance of such termination
to the Company. Employee’s non-renewal of this Agreement under Section 3.1
shall be considered a Resignation.

 

3.6                               Survivability. 
Sections 4 (Compensation and Benefits Upon Termination),
Sections 5 (Confidential Information, Company Property and Competitive
Business Activities), 6 (Intellectual Property Ownership) and 7 (Release), and
8 (Miscellaneous) shall survive the termination of Employee’s employment and/or
the termination of this Agreement regardless of the reasons for such
termination.

 

4.                                      Compensation and Benefits Upon Termination.

 

4.1                               If Employee’s
employment or this Agreement is terminated for any reason other than
Termination without Cause by the Company pursuant to Section 3.2 or
Termination for Good Reason by Employee pursuant to Section 3.4, the
Company’s obligation to compensate Employee ceases on the effective date of
such termination (“Termination Date”), except as to amounts due at such time
for accrued Base Salary, earned incentive bonus (if any), or other accrued or
vested benefits, including, without limitation, any accrued but unused vacation
time payable under Company policy. Base Salary and any accrued but unused
vacation shall be paid within thirty (30) days of the Termination Date.
All other payments shall be made as quickly as possible in accordance with the
terms of the applicable plans.

 

4.2                               If Employee’s
employment under this Agreement is terminated under Section 3.2
(Termination without Cause) or Section 3.4 (Termination for Good Reason)
then the Company’s sole obligation shall be to pay Employee: (i) amounts
due at the Termination Date for accrued Base Salary, or vested benefits,
including, without limitation, any accrued but unused vacation time payable
under Company policy and (ii) an amount equal to twelve times Employee’s
then current monthly Base Salary (less applicable withholdings) (“Post-Termination
Payments”). Provided, however, that the Company’s obligation to provide the
payments under this Section 4.2 is conditioned upon Employee’s execution
of an enforceable release of all claims related to his employment (“Release”)
and his compliance with Sections 5 and 6 of this Agreement.
Post-Termination Payments shall be payable in equal monthly

 

3

 

installments, with payment(s) beginning
after the effective date of the Release. If Employee chooses not to execute
such a Release or fails to comply with Sections 5 and 6, then the Company’s
obligation to compensate him ceases on the Termination Date except as to
amounts due at that time.

 

4.3                               Employee is not
entitled to receive any compensation or benefits upon his termination except
as: (i) set forth in this Agreement; (ii) otherwise required by law;
or (iii) otherwise required by any employee benefit plan in which Employee
participates with the following exception. The terms and conditions afforded
Employee under this Agreement are in lieu of any severance benefits to which
Employee otherwise might be entitled pursuant to a severance plan, policy or
practice. Nothing in this Agreement, however, is intended to waive or supplant
any death, disability, retirement, 401(k) pension benefits, or group
health continuation rights, if any, to which he may be entitled under employee
benefit plans in which Employee participates.

 

5.                                      Confidentiality Information, Company Property and Noncompetition.  Employee acknowledges that: (i) by
virtue of Employee’s senior management and key leadership position with the
Company, Employee will have access to Trade Secrets and Confidential
Information, as defined below; (ii) the Company is a mineral exploration
company engaged in the exploration and evaluation of beryllium mineral
exploration properties in the State of New Mexico (the “Company Business”); and
(iii) the provisions set forth in this Confidential Information, Company
Property and Competitive Business Activities Section are reasonably
necessary to protect the Company’s legitimate business interests, are
reasonable as to time, territory and scope of activities which are restricted,
do not interfere with public policy or public interest and are described with
sufficient accuracy and definiteness to enable Employee to understand the scope
of the restrictions imposed upon him.

 

5.1                               Trade Secrets and Confidential Information.  Employee acknowledges that: (i) the
Company will disclose to Employee certain Trade Secrets and Confidential
Information; (ii) Trade Secrets and Confidential Information are the sole
and exclusive property of the Company (or a third party providing such
information to the Company) and the Company or such third party owns all
worldwide rights therein under patent, copyright, trade secret, confidential
information, or other property right; and (iii) the disclosure of Trade
Secrets and Confidential Information to Employee does not confer upon Employee
any license, interest or rights of any kind in or to the Trade Secrets or
Confidential Information.

 

5.1.1                     Employee may
use the Trade Secrets and Confidential Information only in accordance with
applicable Company policies and procedures and solely for the Company’s benefit
while Employee is employed or otherwise retained by the Company. Except as
authorized in the performance of services for the Company, Employee will hold
in confidence and not directly or indirectly, in any form, by any means, or for
any purpose, disclose, reproduce, distribute, transmit, reverse engineer,
decompile, disassemble, or transfer Trade Secrets or Confidential Information
or any portion thereof. Upon the Company’s request, Employee shall return Trade
Secrets and Confidential Information and all related materials.

 

5.1.2                     If Employee is
required to disclose Trade Secrets or Confidential Information pursuant to a
court order or other government process or such disclosure is necessary to
comply with applicable law or defend against claims, Employee shall: (i) notify
the Company promptly before any such disclosure is made; (ii) at the
Company’s request and expense take all reasonably necessary steps to defend
against such disclosure, including defending against the enforcement of the
court order, other government process or claims; and (iii) permit the
Company to participate with counsel of its choice in any proceeding relating to
any such court order, other government process or claims.

 

5.1.3                     Employee’s
obligations with regard to Trade Secrets shall remain in effect for as long as
such information shall remain a trade secret under applicable law.

 

4

 

5.1.4                     Employee’s
obligations with regard to Confidential Information shall remain in effect
while he is employed or otherwise retained by the Company and for five (5) years
thereafter.

 

5.1.5                     As used in this
Agreement, “Trade Secrets” means information of the Company and its licensors,
suppliers, customers, or prospective licensors or customers, including, but not
limited to, data, formulas, patterns, compilations, programs, devices, methods,
techniques, processes, financial data, financial plans, product plans, or lists
of actual or potential customers or suppliers, which: (i) derives
independent actual or potential commercial value, from not being generally
known to or readily ascertainable through independent development or reverse
engineering by persons or entities who can obtain economic value from its
disclosure or use; and (ii) is the subject of efforts that are reasonable
under the circumstances to maintain its secrecy.

 

5.1.6                     As used in this
Agreement, “Confidential Information” means information other than Trade
Secrets, that is of value to its owner and is treated as confidential,
including, but not limited to, future business plans, licensing strategies,
advertising campaigns, information regarding executives and employees, and the
terms and conditions of this Agreement; provided, however, Confidential
Information shall not include information which is in the public domain or
becomes public knowledge through no fault of Employee.

 

5.2                               Company Property.  Upon
the termination of his employment under this Agreement, Employee shall: (i) deliver
to the Company all records, memoranda, data, documents and other property of
any description which refer or relate in any way to Trade Secrets or
Confidential Information, including all copies thereof, which are in Employee’s
possession, custody or control; (ii) deliver to the Company all Company
property (including, but not limited to, keys, credit cards, client files,
contracts, proposals, work in process, manuals, forms, computer stored work in
process and other computer data, research materials, other items of business
information concerning any Company client, or Company business or business methods,
including all copies thereof) which is in Employee’s possession, custody or
control; (iii) take reasonable steps to bring all such records, files and
other materials up to date before returning them; and (iv) fully cooperate
with the Company in winding up Employee’s work and transferring that work to
other individuals designated by the Company. Provided, however, that the
Company shall provide Employee with reasonable compensation for Employee’s time
in providing assistance under Section 5.2 (iii) or (iv) after
Employee’s Termination Date, if Employee is not otherwise receiving
Post-Termination Payments.

 

5.3                               Competitive Business Activities.

 

5.3.1                     Noncompetition. 
Employee agrees that for a period of time (the “Noncompetition Period”)
commencing on the Effective Date of this Agreement and ending on the date
occurring one (1) year after Employee’s Termination Date (irrespective of
the circumstances of such termination), Employee will not engage in the
following activities within the Protected Area (as defined in Section 5.3.4):

 

(a)                                  on Employee’s
own or another’s behalf, whether as an officer, director, stockholder, member,
partner, associate, owner, employee, agent, consultant, broker, intermediary,
or otherwise, directly or indirectly:

 

(i)             compete with the Company in
the Company’s Business;

 

(ii)          solicit or do business which
is the same, substantially similar to or otherwise in competition with the
Company’s Business, from or with persons or entities: (a) who are
customers of the Company; (b) who Employee or someone for whom he was
responsible solicited, negotiated, contracted, serviced or had contact with on
the Company’s behalf; (c) who were customers of the Company at any time
during the last two (2) years of Employee’s employment with the Company;
or (d) to whom the Company had made

 

5

 

proposals to do business at
any time during the last two (2) years of Employee’s employment with the
Company; or

 

(b)                                 be employed (or
otherwise engaged) in (i) a management capacity, (ii) other capacity
providing the same or substantially similar services which Employee provided to
the Company, or (iii) any capacity connected with competitive business
activities, by any person or entity that engages in the same, similar or otherwise
competitive business as the Company’s Business;

 

(c)                                  directly or
indirectly make any negative or disparaging oral or written statements about
the company or any of its officers, directors and employees, or otherwise
engage in any conduct that could reasonably be expected to adversely affect the
reputation or business of the Company or any of its officers, directors and
employees.

 

5.3.2                     Nonsolicitation. 
Employee agrees that for a period of time (the “Nonsolicitation Period”)
commencing on the Effective Date of this Agreement and ending on the date
occurring one (1) year after Employee’s Termination Date (irrespective of
the circumstances of such termination), Employee will not, within the Protected
Area, offer employment to or otherwise solicit for employment any employee or
other person who had been employed by the Company during the last year of
Employee’s employment with the Company.

 

5.3.3                     Notwithstanding
the foregoing, Employee’s ownership, directly or indirectly, of not more than
one percent of the issued and outstanding stock of a corporation the shares of
which are regularly traded on a national securities exchange or in the
over-the-counter market shall not violate Section 5.3.1.

 

5.3.4                     Protected Area. 
Employee acknowledges that the Company is currently performing mineral
exploration activities in the state of New Mexico and that it is reasonable to
limit Employee’s activities during the Noncompetition Period and the
Nonsolicitation Period to the state of New Mexico. Employee also acknowledges
that due to the nature of the Company’s Business, any geographic limitations on
the scope of his noncompetition and nonsolicitation obligations under this
Agreement that would be narrower in scope than the entire state of New Mexico
would not adequately protect the Company.

 

5.3.5                     Employee
acknowledges that this Section 5.3 is reasonable in terms of its scope and
duration, and necessary for the Company to protect its investments and
legitimate interests.

 

5.4                               Remedies.  Employee
acknowledges that Employee’s failure to abide by the Confidentiality
Information, Company Property and Noncompetition provisions of this Agreement
would cause irreparable harm to the Company for which legal remedies would be
inadequate. Therefore, in addition to any legal or other relief to which the
Company may be entitled by virtue of Employee ‘s failure to abide by this Section 5:
(i) the Company will be released of its obligations under this Agreement
to make any Post Termination Payments, including but not limited to those otherwise
available pursuant to Section 4.2(ii); (ii) the Company may seek
legal and equitable relief, including but not limited to preliminary and
permanent injunctive relief, for Employee’s actual or threatened failure to
abide by this Section 5; (iii) Employee will return all
Post-Termination Payments received pursuant to Section 4.2(ii); (iv) Employee
will indemnify the Company for all expenses including reasonable attorneys’
fees in seeking to enforce these provisions; and (v) if, as a result of
Employee’s failure to abide by the this Section 5, any commission or fee
becomes payable to Employee or to any person, corporation or other entity with
which Employee has become employed or otherwise associated, Employee shall pay
the Company or cause the person, corporation or other entity with whom he has
become employed or otherwise associated to pay the Company an amount equal to
such commission or fee. In the event that the Company exercises its right to
discontinue Post-Termination Payments under

 

6

 

this provision and/or
Employee returns all Post Termination-Payments received pursuant to this
Agreement, Employee shall remain obligated to abide by Section 5 of this
Agreement.

 

5.5                               Tolling.  The period
during which Employee must refrain from the activities set forth in
Sections 5.2 and 5.3 shall be tolled during any period in which he fails
to abide by these provisions.

 

5.6                               Other Agreements. 
Nothing in this Agreement shall terminate, revoke or diminish Employee’s
obligations or the Company’s rights and remedies under law or any agreements
relating to trade secrets, confidential information, non-competition and
intellectual property which Employee has executed in the past or may execute in
the future or contemporaneously with this Agreement.

 

6.                                      Intellectual Property Ownership.

 

6.1                               Works of Authorship.  Employee agrees that all works of authorship,
including, but not limited to, computer programs, code, databases, icons,
design plans, flow charts, designs, notes, drawings, marketing plans, product
plans, writings and all other works subject to copyright protection in any
jurisdiction, created by Employee (solely or in concert with others) that:

 

(i)                                     relate
specifically to his employment with the Company or the business activities of
the Company;

 

(ii)                                  result
specifically from any work that he may perform for the Company; or

 

(iii)                               result from the
use of the time, materials, information, equipment, or facilities of the
Company, even if created during other than working hours with the Company (all
the foregoing in this Section 6.1, collectively, “Works of Authorship,

 

Shall, to the extent of Employee’s interest
therein, be WORKS MADE FOR HIRE,
and all of Employee’s right, title, and interest in and to all such Works of Authorship,
including, but not limited to, all Intellectual Property Rights, shall vest and
reside in, and be the exclusive property of, the Company, as applicable.
Provided, however, that the foregoing shall not apply to any ideas of Employee
having general application outside of the Company’s Business and that do not
relate specifically to the Company Business nor shall it apply to purely
personal use of the Company’s lap top for activities wholly unrelated to
Company business.

 

6.1.1                     To the extent
that, by operation of law or otherwise, any right, title, or interest in or to
the Works of Authorship, including, but not limited to, any Intellectual
Property Rights, does not vest exclusively in the Company, as applicable,
Employee hereby irrevocably and unconditionally assigns to Company, as
applicable, and forever waives, all such right, title and interest. At all
times during, and after termination of, Employee’s employment with the Company,
Employee will assist in the preparation of and sign all documents that the
Company reasonably considers necessary to vest in the Company all right, title,
and interest in and to the Works of Authorship, including, but not limited to,
all Intellectual Property Rights. Further, at all times during, and after
termination of, Employee’s employment with the Company, Employee will use
reasonable efforts to assist the Company in obtaining, maintaining and/or
enforcing the Company’s right, title, and interest in and to such Works of
Authorship, and such assistance shall include, but is not limited to,
activities involving:

 

(i)                                     preparation and
prosecution of copyright registration applications for Works of Authorship,
both domestic and foreign;

 

(ii)                                  enforcement of
any copyrights and registrations associated therewith arising out of the Works
of Authorship (collectively, “Copyrights”), including, but not limited to,
assistance as reasonably deemed necessary by the Company in any legal actions
involving infringement or misappropriation of the Copyrights; and

 

(iii)                               preparation of
descriptions, sketches, drawings and other documents relating to Works of
Authorship.

 

7

 

Any assistance that Employee provides
pursuant to this Section 6.1 after termination of his employment with the
Company shall be rendered at the Company’s expense, including a reasonable
payment for the time involved.

 

6.2                               Employee has
attached hereto, as Exhibit A, a list describing with particularity all
discoveries, original works of authorship, and trade secrets, and all
developments and improvements thereof, conceived, reduced to practice, created
or otherwise made or owned by Employee, whether alone or jointly with others,
prior to the commencement of his Employee’s employment with Company and that
relate in any way to the Company’s current or proposed business or products or
any research or development in connection therewith and are not assigned to
Company hereunder (collectively, along with any portion or component thereof, “Prior
Works of Authorship”). If no such list is attached hereto, Employee hereby
represents and warrants that there are no such Prior Works of Authorship. If,
in the course of Employee’s employment with Company, he incorporates into a
Company publication, product, process, machine, or service any Prior Works of
Authorship owned by Employee or in which Employee has any right, title, or
interest, Employee hereby grants Company a non-exclusive, royalty-free,
fully-paid-up, irrevocable, perpetual, worldwide license (with the right to
sublicense) to make, copy, modify, prepare derivative works of, use, sell,
offer to sell, import, provide, and distribute, whether by Company or any third
party on Company’s behalf, such Prior Work of Authorship or Invention as part
of or in connection with such publication, product, process, machine or
service.

 

7.                                      Release.  Employee
acknowledges that: (i) as a part of Employee’s services, Employee may
provide his image, likeness, voice, or other characteristics; and (ii) the
Company may use Employee’s image, likeness, voice, or other characteristics in
its products and services. Employee consents to the use of such characteristics
and expressly releases the Company and its agents, executives, licensees and
assigns from and against any and all claims which Employee has or may have for
invasion of privacy, right of privacy, defamation, copyright infringement, or
any other causes of action arising out of the use, adaptation, reproduction,
distribution, broadcast, or exhibition of such characteristics.

 

8.                                      Miscellaneous.

 

8.1                               Waiver; Assignment.  The
waiver of any breach of any provision of this Agreement will not operate or be
construed as a waiver of any subsequent breach of the same or other provision
of this Agreement. Employee may not assign Employee’s rights and obligations
under this Agreement without the prior written consent of the Company, which
consent may be withheld for any reason or for no reason. The Company may not
assign its rights and obligations under this Agreement without the prior
written consent of Employee, which consent may not be unreasonably withheld,
except that the Company may assign this Agreement, without Employee’s consent,
to a successor in interest upon a transaction of sale of all, or substantially
all, of the assets or of the stock of the Company.

 

8.2                               Entire Agreement; Modification.  This Agreement represents the entire
understanding among the parties with respect to the subject matter of this
Agreement, and this Agreement supersedes any and all prior understandings,
agreements, plans, and negotiations, whether written or oral, with respect to
the subject matter hereof, including without limitation, any understandings,
agreements, or obligations respecting any past or future compensation, bonuses,
reimbursements, or other payments to Employee from the Company. All
modifications to the Agreement must be in writing and signed by the party
against whom enforcement of such modification is sought.

 

8.3                               Notice.  All notices
and other communications under this Agreement must be in writing and must be
given by personal delivery, telecopier or telegram, or first class mail,
certified or registered with return receipt requested, and will be deemed to
have been duly given upon receipt if personally delivered, three (3) days
after mailing, if mailed, or 24 hours after transmission, if delivered by
telecopier or telegram, to the Company at the Company’s principal office
address as registered with the Colorado Secretary of State with a copy to the
registered agent as registered with the Colorado

 

8

 

Secretary of State and a
copy to a director other than David Tognoni at the address for such director as
maintained in the corporate records and if to the Employee as follows:

 

David Q. Tognoni

107 Hackney Circle

Elephant Butte, NM 87935

 

Any party may change such
party’s address for notices by notice duly given pursuant to this Section.

 

8.4                               No Conflict.  Employee
represents and warrants that Employee is not subject to any agreement, order,
judgment or decree of any kind that would prevent Employee from entering into
this Agreement or performing fully Employee’s obligations hereunder.

 

8.5                               Headings.  The Section headings
of this Agreement are intended for convenience only and may not by themselves
determine the construction or interpretation of this Agreement.

 

8.6                               Governing Law and Forum.  This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Colorado. Except
for actions seeking equitable relief in the form of an injunction, any disputes
arising from the interpretation or enforcement of this Agreement shall be
submitted to binding arbitration in the City and County of Denver, State of
Colorado pursuant to the rules of the Colorado Uniform Arbitration Act.
Not less than 30 days before any such arbitration may be commenced, the
party desiring arbitration shall give notice to the other party and the parties
shall endeavor to mediate the dispute with an impartial mediator. If the
mediation is not successful within that 30 day period, a single arbitrator
shall be mutually selected by the Company and Employee, provided that the
arbitrator shall be an attorney licensed to practice law in the State of
Colorado for a period not less than 15 years. In the event that the
Company and Employee cannot agree on the choice of an arbitrator, one shall be
appointed by the District Court in the City and County of Denver. The
arbitrator shall base his or her decision on applicable law and judicial
precedent and judgment on the award may be entered in a court of competent
jurisdiction for enforcement.

 

Any suits of an equitable
nature relating to, arising out of or in connection with this Agreement shall
be submitted to the in personam
jurisdiction of the courts of the State of Colorado and venue for all such
suits, proceedings and other actions shall be in the City and County of Denver,
Colorado. The Employee hereby waives any claim against or objection to in personam jurisdiction and venue in the
courts of the City and County of Denver, Colorado.

 

8.7                               Successors and Assigns.  This Agreement will be binding on, and inure
to the benefit of, the executors, administrators, heirs, successors, and
assigns of the parties; provided, however, that except as expressly provided in
this Agreement, this Agreement may not be assigned either by the Company or by
Employee.

 

8.8                               Counterparts.  This
Agreement may be executed in one or more counterparts, all of which taken
together will constitute one and the same Agreement.

 

8.9                               Withholdings.  All sums
payable to Employee under this Agreement will be reduced by all federal, state,
local and other withholdings and similar taxes and payments required by
applicable law.

 

8.10                        Severability.  In the event
that any of the provisions of this Agreement shall be held to be invalid or
unenforceable, the remaining provisions shall nevertheless continue to be valid
and enforceable as though the invalid or unenforceable parts had not been
included therein. Without limiting the generality of the foregoing, in the
event that any provision of Section 5 relating to time period, scope of
activities restricted and/or geographic areas of restriction shall be declared
by a court of competent jurisdiction to exceed the maximum time period, scope
or areas(s) such court deems

 

9

 

enforceable, said time
period, scope and/or area(s) of restriction shall be deemed to become, and
thereafter be, the maximum time period and/or area for which such are
enforceable.

 

8.11                        Opportunity to Consult Counsel.  The parties hereto represent and agree that
prior to executing this Agreement, each has had the opportunity to review this
Agreement to consider its terms and consult with independent counsel.

 

8.12                        Section 409A Savings Clause.  To the extent any of the payments or benefits
required under this Agreement are, or in the opinion of counsel to the Company
or Employee, could be interpreted in the future to create, a nonqualified
deferred compensation plan that does not meet the requirements of Section 409A(a)(2),
(3) and (4) of the Internal Revenue Code (“Code”) of 1986, as
amended, and all regulations, guidance, or other interpretative authority
thereunder (the “Section 409A Requirements”), the Company and Employee
hereby agree to execute any and all amendments to this Agreement or otherwise
reform this Agreement as deemed necessary by either of such counsel, and
prepared by counsel to the Company, to either cause such payments or benefits
not to be a nonqualified deferred compensation plan or to meet the Section 409A
Requirements. In amending or reforming this Agreement for Code Section 409A
purposes, the Company shall maintain, to the maximum extent practicable, the
original intent and economic benefit of this Agreement without subjecting the
Employee to additional tax or interest; provided further, however, the Company
shall not be obligated to pay any additional material amount to Employee as a
result of such amendment.

 

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the day and year first above
written.

 

	
   

  	
  BE RESOURCES, INC.,  

  
	
   

  	
  a Colorado corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ED GODIN

  
	
   

  	
  Name:

  	
  Ed Godin

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
  Date:

  	
           /         /

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DAVID Q. TOGNONI 

  
	
   

  	
   

  	
  David Q. Tognoni

  
	
   

  	
  Date:

  	
           /         /

  

 

10

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