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<TITLE>CC Filed by Filing Services Canada Inc. 403-717-3898 </TITLE>
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<META NAME="date" CONTENT="03/07/2006">
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<P style="border-bottom: 2 solid #000000; margin-top: 4.15pt; margin-bottom: 4.15pt" align=center>&nbsp;</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt" align=center>&nbsp;</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt" align=center><FONT FACE="Times New Roman" COLOR=#000000><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B></FONT></P>
<P style="line-height:15.5pt; margin-top:5.65pt; margin-bottom:5.65pt; font-family:Arial; font-size:13.5pt" align=center><FONT FACE="Arial"><B>FORM S-8</B></FONT></P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt" align=center><FONT FACE="Times New Roman"><B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B></FONT></P>
<P style="margin:0pt" align=center><B>YUKON RESOURCES CORP.</B></P>
<P style="margin:0pt" align=justify><BR></P>
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<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=173.25></TD><TD width=10.8></TD><TD width=173.3></TD><TD width=10.85></TD><TD width=173.3></TD></TR>
<TR><TD valign=top width=231><P style="margin:0pt" align=justify><BR></P>
<P style="line-height:12.3pt; margin:0pt; font-size:11pt" align=center><B>Nevada</B></P>
</TD><TD valign=top width=14.4><P style="margin:0pt; font-size:11pt" align=justify><BR>
<B>&nbsp;</B></P>
</TD><TD valign=top width=231.067><P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B>1000 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
</TD><TD valign=top width=14.467><P style="margin:0pt; font-size:11pt" align=justify><BR>
<B>&nbsp;</B></P>
</TD><TD valign=top width=231.067><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><B>20-0803515</B></P>
</TD></TR>
<TR><TD valign=top align="center"><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>(State or Other Jurisdiction of<BR>
Incorporation or Organization)</P>
</TD><TD valign=top align="center"><P style="margin:0pt; font-size:11pt" align=justify>&nbsp;</P>
</TD><TD valign=top align="center"><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>(Primary Standard Industrial<br>
    Classification Code Number)</P>
</TD><TD valign=top align="center"><P style="margin:0pt; font-size:11pt" align=justify>&nbsp;</P>
</TD><TD valign=top align="center"><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>(I.R.S. Employer Identification No.)</P>
</TD></TR>
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</div>
<P style="margin:0pt" align=justify>&nbsp;</P>
<P style="margin:0pt" align=justify>&nbsp;</P>
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  <center>
  <table border="0" cellpadding="0" cellspacing="0" width="100%" height="64">
    <tr>
      <td width="50%" height="22" align="center"><font size="2"><U>206-475 Howe Street, Vancouver, British Columbia, Canada</U> &nbsp;</font></td>
      <td width="50%" height="22" align="center"><U><font size="2">V6C 2B3</font></U></td>
    </tr>
    <tr>
      <td width="50%" height="21" align="center"><font size="2">(Address of principal executive offices)</font></td>
      <td width="50%" height="21" align="center"><font size="2">(Zip Code)</font></td>
    </tr>
    <tr>
      <td width="50%" height="21">&nbsp;
        <p><font size="2">Registrant&#146;s telephone number, including area code: &nbsp;(604) 629-1075</font></td>
      <td width="50%" height="21"></td>
    </tr>
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  </center>
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<P style="margin:0pt" align=justify><BR><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center><B><U>2006 Stock Option Plan</U></B></P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt" align=center>&nbsp;(Full title of the plan)</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt" align=center>Copies of all communications, including all communications sent to the agent for service, should be sent to:</P>
<P style="margin:0pt" align=center>Joseph I. Emas, Attorney at Law</P>
<P style="margin:0pt" align=center>1224 Washington Avenue</P>
<P style="margin:0pt" align=center>Miami Beach, Florida 33139</P>
<P style="margin:0pt" align=center><U>Telephone: 305.531.1174</U></P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt" align=center><B>CALCULATION OF REGISTRATION FEE</B></P>
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<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=109></TD><TD width=89.75></TD><TD width=94.5></TD><TD width=99.2></TD><TD width=80.8></TD></TR>
<TR><TD style="border:3pt double #DFDFDF" valign=bottom width=145.333><P style="margin-top:5pt; margin-bottom:5pt" align=center><B>Title of Securities to<BR>
be Registered</B></P>
</TD><TD style="border-top:3pt double #DFDFDF; border-right:3pt double #DFDFDF; border-bottom:3pt double #DFDFDF" valign=bottom width=119.667><P style="margin-top:5pt; margin-bottom:5pt" align=center><B>Amount to be<BR>
Registered</B></P>
</TD><TD style="border-top:3pt double #DFDFDF; border-right:3pt double #DFDFDF; border-bottom:3pt double #DFDFDF" valign=bottom width=126><P style="margin-top:5pt; margin-bottom:5pt" align=center><B>Proposed<BR>
Maximum<BR>
Offering<BR>
Price Per Share</B></P>
</TD><TD style="border-top:3pt double #DFDFDF; border-right:3pt double #DFDFDF; border-bottom:3pt double #DFDFDF" valign=bottom width=132.267><P style="margin-top:5pt; margin-bottom:5pt" align=center><B>Proposed<BR>
Maximum<BR>
Aggregate<BR>
Offering Price</B></P>
</TD><TD style="border-top:3pt double #DFDFDF; border-right:3pt double #DFDFDF; border-bottom:3pt double #DFDFDF" valign=bottom width=107.733><P style="margin-top:5pt; margin-bottom:5pt" align=center><B>Amount of <BR>
Registration<BR>
Fee</B></P>
</TD></TR>
<TR><TD style="border-left:3pt double #DFDFDF; border-right:3pt double #DFDFDF; border-bottom:3pt double #DFDFDF" valign=top width=145.333><P style="margin-top:5pt; margin-bottom:5pt">Common Stock</P>
</TD><TD style="border-right:3pt double #DFDFDF; border-bottom:3pt double #DFDFDF" valign=top width=119.667><P style="line-height:normal; margin-top:5pt; margin-bottom:5pt" align=center>2,000,000<SUP>(1)</SUP></P>
</TD><TD style="border-right:3pt double #DFDFDF; border-bottom:3pt double #DFDFDF" valign=top width=126><P style="margin-top:5pt; margin-bottom:5pt" align=center>$0.95<SUP>(1)</SUP></P>
</TD><TD style="border-right:3pt double #DFDFDF; border-bottom:3pt double #DFDFDF" valign=top width=132.267><P style="margin-top:5pt; margin-bottom:5pt" align=center>$1,900,000<SUP> (2)</SUP></P>
</TD><TD style="border-right:3pt double #DFDFDF; border-bottom:3pt double #DFDFDF" valign=top width=107.733><P style="margin-top:5pt; margin-bottom:5pt" align=center>$205.<SUP> (2)</SUP></P>
</TD></TR>
</TABLE>
  </center>
</div>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; padding-left:36pt"><SUP>(1)</SUP> We are registering an aggregate of up to 2,000,000 of our common shares, issuable pursuant to our 2006 Stock Option Plan. Pursuant to Rule 416(a) under the Securities Act of 1933, as amended (the &quot;Securities Act&quot;), this Registration Statement shall also cover any additional shares of Common Stock attributable to these registered shares which become issuable under the Yukon resources 2006 Stock Option Plan by reason of any stock dividend, stock split, recapitalization or other similar transaction effected without the Registrant's receipt of consideration which results in an increase in the number of the outstanding shares of the Registrant's Common Stock.</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; padding-left:36pt"><SUP>(2)</SUP> The price is estimated in accordance with Rule 457(h)(1) under the Securities Act of 1933, as amended, solely for the purpose of calculating the registration fee, based on the average of the bid and asked price of the common stock of Yukon resources Corp. as reported on the National Association of Securities Dealers Inc.'s OTC Bulletin Board on March 6, 2006.</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; padding-left:36pt">&nbsp;</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; padding-left:36pt">&nbsp;</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; padding-left:36pt">&nbsp;</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; padding-left:36pt">&nbsp;</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt" align=center>-2-</P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; page-break-before:always" align=center><B>Part I</B></P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt" align=center><B>INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS</B></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Information specified in Part I of Form S-8 (Items 1 and 2) will be sent or given to the 2006 Plan participants as specified by Rule 428(b)(1) under the Securities Act of 1933.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>To date, the following individuals have received options pursuant to the 2006 Stock option Plan:</P>
<P style="margin:0pt">&nbsp;</P>
<div align="left">
  <table border="0" cellpadding="0" cellspacing="0" width="40%">
    <tr>
      <td width="50%"><font size="2">Douglas Merrick</font></td>
      <td width="50%" align="right"><font size="2">225,000</font></td>
    </tr>
    <tr>
      <td width="50%"><font size="2">
Kevin Moe</font></td>
      <td width="50%" align="right"><font size="2">50,250</font></td>
    </tr>
    <tr>
      <td width="50%"><font size="2">
Michael McCullagh</font></td>
      <td width="50%" align="right"><font size="2">150,000</font></td>
    </tr>
    <tr>
      <td width="50%"><font size="2">
Kerry McCullagh</font></td>
      <td width="50%" align="right"><font size="2">300,000</font></td>
    </tr>
    <tr>
      <td width="50%"><font size="2">
David Parfitt</font></td>
      <td width="50%" align="right"><font size="2">255,000</font></td>
    </tr>
    <tr>
      <td width="50%"><font size="2">
Randall Pow&nbsp;</font></td>
      <td width="50%" align="right"><font size="2">255,000</font></td>
    </tr>
  </table>
</div>
<P style="margin:0pt"><BR><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; text-indent:108pt"><BR>
</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>Additional options will be granted as directed by the Board of Directors of Yukon Resources Corp.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt" align=center><B>Part II</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE.</P>
<P style="margin:4.15pt" align=center><BR></P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">1. Our Annual Report on Form 10-KSB filed on September 30, 2005; and </P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">2. The description of our company's common stock contained these exhibits are incorporated herein by this reference to the Company&#146;s registration statement of Form SB-2, filed on September 14, 2004; and</P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">3. Our Quarterly Reports on Form 10-QSB filed October 31, 2005, and January 31, 2006.</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">All documents subsequently filed by the Registrant pursuant to Sections 13(a), 13(c), 14, and 15(d) of the 1934 Act, prior to the filing of a post-effective amendment which indicates that all securities offered hereby have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference herein and to be a part hereof from the date of the filing of such documents.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes hereof to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part hereof.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">ITEM 4. DESCRIPTION OF SECURITIES.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable; see Item 3 above.</P>
<P style="margin:5pt" align=center><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt; page-break-before:always">ITEM&nbsp;5. INTERESTS OF NAMED EXPERTS AND COUNSEL.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt">The legality of the shares of Common Stock registered under this Registration Statement are being passed on for the Registrant by Joseph I. Emas, Esq., the Registrant's legal counsel.</P>
<P style="margin:4.15pt"><BR></P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">ITEM&nbsp;6. INDEMNIFICATION OF DIRECTORS AND OFFICERS.</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt">Nevada corporation law provides that:</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt">- a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit or proceeding if he acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful;</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt">- a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including amounts paid in settlement and attorneys' fees actually and reasonably incurred by him in connection with the defense or settlement of the action or suit if he acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation. Indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper; and</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt">- to the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding, or in defense of any claim, issue or matter therein, the corporation shall indemnify him against expenses, including attorneys' fees, actually and reasonably incurred by him in connection with the defense.</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt">Our bylaws provide that we will advance all expenses incurred to any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suite or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he is or was our director or officer, or is or was serving at our request as a director or executive officer of another company, partnership, joint venture, trust or other enterprise, prior to the final disposition of the proceeding, promptly following request. This advanced of expenses is to be made upon receipt of an undertaking by or on behalf of such person to repay said amounts should it be ultimately determined that the person was not entitled to be indemnified under our bylaws or otherwise.</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt">Our bylaws also provide that no advance shall be made by us to any officer in any action, suit or proceeding, whether civil, criminal, administrative or investigative, if a determination is reasonably and promptly made: (a) by the board of directors by a majority vote of a quorum consisting of directors who were not parties to the proceeding; or (b) if such quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, by independent legal counsel in a written opinion, that the facts known to the decision-making party at the time such determination is made demonstrate clearly and convincingly that such person acted in bad faith or in a manner that such person did not believe to be in or not opposed to our best interests.</P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt">Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of our company under Nevada law or otherwise, we have been advised the opinion of the Securities and Exchange Commission is that such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event a claim for indemnification against such liabilities (other than payment by us for expenses incurred or paid by a director, officer or controlling person of our company in successful defense of any action, suit, or proceeding) is asserted by a director, officer or controlling person in connection with the securities being registered, we will, unless in the opinion of its counsel the matter has been settled by </P>
<P style="margin:4.15pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin-top:4.15pt; margin-bottom:4.15pt; page-break-before:always">controlling precedent, submit to a court of appropriate jurisdiction, the question of whether such indemnification by it is against public policy in said Act and will be governed by the final adjudication of such issue.</P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">ITEM&nbsp;7. EXEMPTION FROM REGISTRATION CLAIMED.</P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">Not Applicable.</P>
<P style="margin:5pt"><BR></P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">ITEM&nbsp;8. EXHIBITS.</P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">4.1 &nbsp;2006 Stock option Plan..</P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">5.1 &nbsp;Opinion of Joseph I. Emas, Esq. </P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">23.1 Consent of Joseph I. Emas, Esq. (included in Exhibit 5)</P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">23.2 Consent of Manning Elliot Chartered Accountants, independent registered public accounting firm. &nbsp;</P>
<P style="margin:5pt"><BR></P>
<P style="line-height:14pt; margin-top:5pt; margin-bottom:5pt; font-size:12pt">ITEM&nbsp;9. UNDERTAKINGS.</P>
<P style="margin:0pt"><B>The undersigned registrant hereby undertakes: </B></P>
<P style="margin:0pt; font-size:7.5pt">&nbsp;</P>
<P style="margin:0pt">(a) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions described above, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue. </P>
<P style="margin:0pt; font-size:7.5pt">&nbsp;</P>
<P style="margin:0pt">(b) The undersigned registrant hereby undertakes: </P>
<P style="margin:0pt; font-size:7.5pt">&nbsp;</P>
<P style="margin:0pt; padding-left:24.45pt">(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement; </P>
<P style="margin:0pt; font-size:7.5pt">&nbsp;</P>
<P style="margin:0pt; padding-left:24.45pt">(2) To include any prospectus required by section 10(a)(3) of the Securities Act of 1933; </P>
<P style="margin:0pt; font-size:7.5pt">&nbsp;</P>
<P style="margin:0pt; padding-left:24.45pt">(3) To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually, or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement; notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the &#147;Calculation of Registration Fee&#148; table in the effective Registration Statement; and </P>
<P style="margin:0pt; font-size:7.5pt">&nbsp;</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:24.45pt">(4) To include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement </P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; font-size:7.5pt; page-break-before:always">&nbsp;</P>
<P style="margin:0pt; padding-left:48.95pt; text-indent:24.5pt">(i) That, for the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof; and </P>
<P style="margin:0pt; font-size:7.5pt">&nbsp;</P>
<P style="margin:0pt; padding-left:48.95pt; text-indent:24.5pt">(ii) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the Offering. </P>
<P style="margin:0pt; font-size:7.5pt">&nbsp;</P>
<P style="margin:0pt">(c) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the registrant&#146;s annual report pursuant to Section&nbsp;13(a) or Section&nbsp;15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan&#146;s annual report pursuant to Section&nbsp;15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the Registration Statement shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. </P>
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<P style="margin-top:4.15pt; margin-bottom:4.15pt; page-break-before:always" align=center><B>SIGNATURES</B></P>
<P style="margin-top:4.15pt; margin-bottom:4.15pt">Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, on March 8, 2006.</P>
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<P style="line-height:normal; margin:0pt; font-family:Arial" align=center><FONT FACE="Arial">&nbsp;</FONT><FONT FACE="Times New Roman">YUKON RESOURCES CORP.</FONT></P>
<P style="margin:0pt" align=justify><BR></P>
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<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; font-size:11pt" align=justify><FONT FACE="Times New Roman">Dated: &nbsp;March
9, 2006</FONT></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; text-indent:144pt; font-size:11pt" align=justify>&nbsp;</P>
<P style="line-height:13pt; margin:0pt; text-indent:252pt; font-size:11pt" align=justify>By: /s/ Thornton J. Donaldson</P>
<P style="line-height:13pt; margin:0pt; padding-left:252pt; font-size:11pt" align=justify>___________________</P>
<P style="line-height:13pt; margin:0pt; padding-left:216pt; text-indent:36pt; font-size:11pt" align=justify>Thornton J. Donaldson,</P>
<P style="line-height:13pt; margin:0pt; padding-left:252pt; font-size:11pt" align=justify>President, Principal Executive Officer and Director</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; font-size:11pt" align=justify>Dated: &nbsp;March
9, 2006</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; text-indent:144pt; font-size:11pt" align=justify>&nbsp;</P>
<P style="line-height:13pt; margin:0pt; text-indent:252pt; font-size:11pt" align=justify>By: /s/ Thornton J. Donaldson</P>
<P style="line-height:13pt; margin:0pt; padding-left:252pt; font-size:11pt" align=justify>___________________</P>
<P style="line-height:13pt; margin:0pt; padding-left:216pt; text-indent:36pt; font-size:11pt" align=justify>Thornton J. Donaldson,</P>
<P style="line-height:13pt; margin:0pt; padding-left:252pt; font-size:11pt" align=justify>President, Principal Accounting Officer and Director</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>POWER OF ATTORNEY</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Thornton J. Donaldson, his true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, and any other regulatory authority, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their substitutes, may lawfully do or cause to be done by virtue hereof.</P>
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<P style="margin:0pt; font-family:Courier New"><FONT FACE="Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;----------</FONT></P>
<P style="line-height:12.3pt; margin:0pt; font-size:11pt" align=justify><FONT FACE="Times New Roman">Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons in the capacities and on the dates indicated.</FONT></P>
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<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=167.4></TD><TD width=13.5></TD><TD width=171></TD><TD width=13.5></TD><TD width=113.35></TD></TR>
<TR><TD valign=top width=223.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Signatures</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=228><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Title</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=151.133><P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Date</P>
<P style="margin:0pt" align=center><BR></P>
</TD></TR>
<TR><TD valign=top width=223.2><P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>/S/ Thornton J. Donaldson</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Thornton J. Donaldson</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=228><P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>President, Principal Executive Officer, Principal Accounting Officer, Director</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=151.133><P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>March 9, 2006</P>
</TD></TR>
<TR><TD valign=top width=223.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=228>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=151.133>&nbsp;</TD></TR>
<TR><TD valign=top width=223.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=228>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=151.133>&nbsp;</TD></TR>
<TR><TD valign=top width=223.2><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>/S/ Jeff Murdock</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Jeff Murdock</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=228><P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>Secretary and Director</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=151.133><P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>March 9, 2006</P>
</TD></TR>
<TR><TD valign=top width=223.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=228>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=151.133>&nbsp;</TD></TR>
</TABLE>
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<P style="line-height:13pt; margin:0pt; font-size:11pt; page-break-before:always" align=center>Exhibit 4.1</P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt" align=center>______________________________________</P>
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<P style="line-height:9.5pt; margin:0pt; font-size:8pt" align=center><B>YUKON RESOURCES CORP.</B></P>
<P style="line-height:9.5pt; margin:0pt; font-size:8pt" align=center><B>2006 STOCK OPTION PLAN</B></P>
<P style="margin:0pt" align=center>______________________________________ </P>
<P style="margin:0pt" align=center><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>1.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Purpose</U>. &nbsp;The purpose of this Plan is to advance the interests of Yukon Resources Corp., a Nevada corporation (the &#147;Company&#148;), by providing an additional incentive to attract, retain and motivate highly qualified and competent persons who are key to the Company, including key employees, consultants, independent contractors, Officers and Directors, and upon whose efforts and judgment the success of the Company and its Subsidiaries is largely dependent, by authorizing the grant of options to purchase Common Stock of the Company and other related benefits to persons who are eligible to participate hereunder, thereby encouraging stock ownership in the Company by such persons, all upon and subject to the terms and conditions of this Plan.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>2.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Definitions</U>. &nbsp;As used herein, the following terms shall have the meanings indicated:</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(a)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Board&#148; shall mean the Board of Directors of the Company.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(b)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Cause&#148; shall mean any of the following:</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(i)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>a determination by the Company that there has been a willful, reckless or grossly negligent failure by the Optionee to perform his or her duties as an employee of the Company;</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(ii)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>a determination by the Company that there has been a willful breach by the Optionee of any of the material terms or provisions of any employment agreement between such Optionee and the Company;</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(iii)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>any conduct by the Optionee that either results in his or her conviction of a felony under the laws of the United States of America or any state thereof, or of an equivalent crime under the laws of any other jurisdiction;</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(iv)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>a determination by the Company that the Optionee has committed an act or acts involving fraud, embezzlement, misappropriation, theft, breach of fiduciary duty or material dishonesty against the Company, its properties or personnel;</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(v)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>any act by the Optionee that the Company determines to be in willful or wanton disregard of the Company&#146;s best interests, or which results, or is intended to result, directly or indirectly, in improper gain or personal enrichment of the Optionee at the expense of the Company;</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(vi)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>a determination by the Company that there has been a willful, reckless or grossly negligent failure by the Optionee to comply with any rules, regulations, policies or procedures of the Company, or that the Optionee has engaged in any act, behavior or conduct demonstrating a deliberate and material violation or disregard of standards of behavior that the Company has a right to expect of its employees; or</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(vii)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>if the Optionee, while employed by the Company and for two years thereafter, violates a confidentiality and/or noncompete agreement with the Company, or fails to safeguard, divulges, </P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt; page-break-before:always" align=justify>communicates, uses to the detriment of the Company or for the benefit of any person or persons, or misuses in any way, any Confidential Information; <I>provided, however,</I> that, if the Optionee has entered into a written employment agreement with the Company which remains effective and which expressly provides for a termination of such Optionee&#146;s employment for &#147;cause,&#148; the term &#147;Cause&#148; as used herein shall have the meaning as set forth in the Optionee&#146;s employment agreement in lieu of the definition of &#147;Cause&#148; set forth in this Section 2(b).</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(c)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Change of Control&#148; shall mean the acquisition by any person or group (as that term is defined in the Exchange Act, and the rules promulgated pursuant to that act) in a single transaction or a series of transactions of thirty percent (30%) or more in voting power of the outstanding stock of the Company and a change of the composition of the Board of Directors so that, within two years after the acquisition took place, a majority of the members of the Board of Directors of the Company, or of any corporation with which the Company may be consolidated or merged, are persons who were not directors or officers of the Company or one of its Subsidiaries immediately prior to the acquisition, or to the first of a series of transactions which resulted in the acquisition of thirty percent (30%) or more in voting power of the outstanding stock of the Company.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(d)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Code&#148; shall mean the Internal Revenue Code of 1986, as amended.</P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(e)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Committee&#148; shall mean the stock option committee appointed by the Board or, if not appointed, the Board.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(f)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Common Stock&#148; shall mean the Company&#146;s Common Stock, par value $.001 per share.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(g)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Director&#148; shall mean a member of the Board.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(h)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Employee&#148; shall mean any person, including officers, directors, consultants and independent contractors employed by the Company or any parent or Subsidiary of the Company within the meaning of Section 3401(c) of the regulators promulgated thereunder.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(i)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Exchange Act&#148; shall mean the Securities Exchange Act of 1934, as amended.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(j)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Fair Market Value&#148; of a Share on any date of reference shall be the Closing Price of a share of Common Stock on the business day immediately preceding such date, unless the Committee in its sole discretion shall determine otherwise in a fair and uniform manner. &nbsp;For this purpose, the &#147;Closing Price&#148; of the Common Stock on any business day shall be (i) if the Common Stock is listed or admitted for trading on any United States national securities exchange, or if actual transactions are otherwise reported on a consolidated transaction reporting system, the last reported sale price of the Common Stock on such exchange or reporting system, as reported in any newspaper of general circulation, (ii)&nbsp;if the Common Stock is quoted on The Nasdaq Stock Market (&#147;Nasdaq&#148;), or any similar system of automated dissemination of quotations of securities prices in common use, the mean between the closing high bid and low asked quotations for such day of the Common Stock on such system, or (iii)&nbsp;if neither clause (i) nor (ii) is applicable, the mean between the high bid and low asked quotations for the Common Stock as reported by the National Quotation Bureau, Incorporated if at least two securities dealers have inserted both bid and asked quotations for the Common Stock on at least five of the 10 preceding days. &nbsp;If the information set forth in clauses&nbsp;(i) through (iii) above is unavailable or inapplicable to the Company (e.g., if the Company&#146;s Common Stock is not then publicly traded or quoted), then the &#147;Fair </P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt; page-break-before:always" align=justify>Market Value&#148; of a Share shall be the fair market value (i.e., the price at which a willing seller would sell a Share to a willing buyer when neither is acting under compulsion and when both have reasonable knowledge of all relevant facts) of a share of the Common Stock on the business day immediately preceding such date as the Committee in its sole and absolute discretion shall determine in a fair and uniform manner.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(k)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Incentive Stock Option&#148; shall mean an incentive stock option as defined in Section 422 of the Code.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(l)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Non-Statutory Stock Option&#148; or &#147;Nonqualified Stock Option&#148; shall mean an Option which is not an Incentive Stock Option.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(m)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Officer&#148; shall mean the Company&#146;s chairman, president, principal financial officer, principal accounting officer (or, if there is no such accounting officer, the controller), any vice-president of the Company in charge of a principal business unit, division or function (such as sales, administration or finance), any other officer who performs a policy-making function, or any other person who performs similar policy-making functions for the Company. &nbsp;Officers of Subsidiaries shall be deemed Officers of the Company if they perform such policy-making functions for the Company. &nbsp;As used in this paragraph, the phrase &#147;policy-making function&#148; does not include policy-making functions that are not significant. &nbsp;Unless specified otherwise in a resolution by the Board, an &#147;executive officer&#148; pursuant to Item 401(b) of Regulation S-K (17 C.F.R. &#167; 229.401(b)) shall be only such person designated as an &#147;Officer&#148; pursuant to the foregoing provisions of this paragraph.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(n)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Option&#148; (when capitalized) shall mean any stock option granted under this Plan.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(o)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Optionee&#148; shall mean a person to whom an Option is granted under this Plan or any person who succeeds to the rights of such person under this Plan by reason of the death of such person.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(p)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Plan&#148; shall mean this 2006 Stock Option Plan of the Company, which Plan shall be effective upon approval by the Board, subject to approval, within 12 months of the date thereof by holders of a majority of the Company&#146;s issued and outstanding Common Stock of the Company.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(q)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Share&#148; or &#147;Shares&#148; shall mean a share or shares, as the case may be, of the Common Stock, as adjusted in accordance with Section 10 of this Plan.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(r)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>&#147;Subsidiary&#148; shall mean any corporation (other than the Company) in any unbroken chain of corporations beginning with the Company if, at the time of the granting of the Option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50 percent or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>3.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Shares and Options</U>. &nbsp;Subject to adjustment in accordance with Section 10 hereof, the Company may issue up to two million (2,000,000) Shares from Shares held in the Company&#146;s treasury or from authorized and unissued Shares through the exercise of Options issued pursuant to the provisions of this Plan. &nbsp;If any Option granted under this Plan shall terminate, expire, or be canceled, forfeited or surrendered as to any Shares, the Shares relating to such lapsed Option shall be available for issuance pursuant to new Options subsequently granted under this Plan. &nbsp;Upon the grant of any Option hereunder, the authorized and unissued Shares to which such Option relates shall be reserved for issuance to permit exercise under this Plan. &nbsp;Subject to the provisions </P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt; page-break-before:always" align=justify>of Section 14 hereof, an Option granted hereunder shall be either an Incentive Stock Option or a Non-Statutory Stock Option as determined by the Committee at the time of grant of such Option and shall clearly state whether it is an Incentive Stock Option or Non-Statutory Stock Option. &nbsp;All Incentive Stock Options shall be granted within 10 years from the effective date of this Plan. &nbsp;</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>4.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Limitations</U>. &nbsp;Options otherwise qualifying as Incentive Stock Options hereunder will not be treated as Incentive Stock Options to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of the Shares, with respect to which Options meeting the requirements of Code Sec&shy;tion&nbsp;422(b) are exercisable for the first time by any individual during any calendar year (under all stock option or similar plans of the Company and any Subsidiary), exceeds $100,000.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>5.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Conditions for Grant of Options</U>.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(a)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Each Option shall be evidenced by an option agreement that may contain any term deemed necessary or desirable by the Committee, provided such terms are not inconsistent with this Plan or any applicable law. &nbsp;Optionees shall be those persons selected by the Committee from the class of all regular Employees of the Company or its Subsidiaries, including Employee Directors and Officers who are regular or former regular employees of the Company, Directors who are not regular employees of the Company, as well as consultants to the Company. &nbsp;Any person who files with the Committee, in a form satisfactory to the Committee, a written waiver of eligibility to receive any Option under this Plan shall not be eligible to receive any Option under this Plan for the duration of such waiver.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(b)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>In granting Options, the Committee shall take into consideration the contribution the person has made, or is expected to make, to the success of the Company or its Subsidiaries and such other factors as the Committee shall determine. &nbsp;The Committee shall also have the authority to consult with and receive recommendations from Officers and other personnel of the Company and its Subsidiaries with regard to these matters. &nbsp;The Committee may from time to time in granting Options under this Plan prescribe such terms and conditions concerning such Options as it deems appropriate, provided that such terms and conditions are not more favorable to an Optionee than those expressly permitted herein; provided further, however, that to the extent not cancelled pursuant to Section 9(b) hereof, upon a Change in Control, any Options that have not yet vested, may, in the sole discretion of the Committee, vest upon such Change in Control.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(c)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>The Options granted to employees under this Plan shall be in addition to regular salaries, pension, life insurance or other benefits related to their employment with the Company or its Subsidiaries. &nbsp;Neither this Plan nor any Option granted under this Plan shall confer upon any person any right to employment or continuance of employment (or related salary and benefits) by the Company or its Subsidiaries.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>6.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Exercise Price</U>. &nbsp;The exercise price per Share of any Option shall be any price determined by the Committee but in no event shall the exercise price per Share of any Option be less than the Fair Market Value of the Shares underlying such Option on the date such Option is granted and, in the case of an Incentive Stock Option granted to a 10% stockholder, the per Share exercise price will not be less than 110% of the Fair Market Value. &nbsp;Re-granted Options, or Options which are canceled and then re-granted covering such canceled Options, will, for purposes of this Section 6, be deemed to have been granted on the date of the re-granting.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt; page-break-before:always" align=justify>7.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Exercise of Options</U>.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(a)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>An Option shall be deemed exercised when (i)&nbsp;the Company has received written notice of such exercise in accordance with the terms of the Option, (ii)&nbsp;full payment of the aggregate option price of the Shares as to which the Option is exercised has been made, (iii)&nbsp;the Optionee has agreed to be bound by the terms, provisions and conditions of any applicable stockholders&#146; agree&shy;ment, and (iv)&nbsp;arrangements that are satisfactory to the Committee in its sole discretion have been made for the Optionee&#146;s payment to the Company of the amount that is necessary for the Company or the Subsidiary employing the Optionee to withhold in accordance with applicable Federal or state tax withholding requirements. &nbsp;Unless further limited by the Committee in any Option, the exercise price of any Shares purchased pursuant to the exercise of such Option shall be paid in cash, by certified or official bank check, by money order, with Shares or by a combination of the above; provided, however, that the Committee in its sole discretion may accept a personal check in full or partial payment of any Shares. &nbsp;The Company in its sole discretion may, on an individual basis or pursuant to a general program established by the Committee in connection with this Plan, lend money to an Optionee to exercise all or a portion of the Option granted hereunder. &nbsp;If the exercise price is paid in whole or part with the Optionee&#146;s promissory note, such note shall (i)&nbsp;provide for full recourse to the maker, (ii)&nbsp;be collateralized by the pledge of the Shares that the Optionee purchases upon exercise of such Option, (iii)&nbsp;bear interest at a rate no less than the rate of interest payable by the Company to its principal lender, and (iv)&nbsp;contain such other terms as the Committee in its sole discretion shall require.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(b)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>No Optionee shall be deemed to be a holder of any Shares subject to an Option unless and until a stock certificate or certificates for such Shares are issued to such person(s) under the terms of this Plan. &nbsp;No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as expressly provided in Section 10 hereof.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(c)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Any Option may, in the discretion of the Committee, be exercised pursuant to a &#147;cashless&#148; or &#147;net issue&#148; exercise. &nbsp;In lieu of exercising the Option as specified in subsection (a) above, the Optionee may pay in whole or in part with Shares, the number of which shall be determined by dividing (a) the aggregate Fair Value of such Shares otherwise issuable upon exercise of the Option minus the aggregate Exercise Price of such Option by (b) the Fair Value of one such Share, or the Optionee may pay in whole or in part through a reduction in the number of Shares received through the exercise of the Option equal to the quotient of the (a) aggregate Fair Value of all the Shares issuable upon exercise of the Option minus the aggregate Exercise Price of such Option (b) divided by the Fair Value of one such share. &nbsp;If the exercise price is paid in whole or in part with Shares, the value of the Shares surrendered shall be their Fair Market Value on the date the Option is exercised.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>8.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Exercisability of Options</U>. &nbsp;Any Option shall become exercisable in such amounts, at such intervals, upon such events or occurrences and upon such other terms and conditions as shall be provided in an individual Option agreement evidencing such Option, except as otherwise provided in Section 5(b) or this Section 8.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(a)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>The expiration date(s) of an Option shall be determined by the Committee at the time of grant, but in no event shall an Option be exercisable after the expiration of 10 years from the date of grant of the Option.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt; page-break-before:always" align=justify>(b)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Unless otherwise expressly provided in any Option as approved by the Committee, notwithstanding the exercise schedule set forth in any Option, each outstanding Option, may, in the sole discretion of the Committee, become fully exercisable upon the date of the occurrence of any Change of Control, but, unless otherwise expressly provided in any Option, no earlier than six months after the date of grant, and if and only if Optionee is in the employ of the Company on such date.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(c)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>The Committee may in its sole discretion accelerate the date on which any Option may be exercised and may accelerate the vesting of any Shares subject to any Option or previously acquired by the exercise of any Option.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>9.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Termination of Option Period</U>.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(a)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Unless otherwise expressly provided in any Option, the unexercised portion of any Option shall automatically and without notice immediately terminate and become forfeited, null and void at the time of the earliest to occur of the following:</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(i)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>three months after the date on which the Optionee&#146;s employment is terminated for any reason other than by reason of (A)&nbsp;Cause, (B)&nbsp;the termination of the Optionee&#146;s employment with the Company by such Optionee following less than 60 days&#146; prior written notice to the Company of such termination (an &#147;Improper Termination&#148;), (C)&nbsp;a mental or physical disability (within the meaning of Section 22(e) of the Code) as determined by a medical doctor satisfactory to the Committee, or (D)&nbsp;death;</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(ii)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>immediately upon (A)&nbsp;the termination by the Company of the Optionee&#146;s employment for Cause, or (B)&nbsp;an Improper Termination;</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(iii)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>one year after the date on which the Optionee&#146;s employment is terminated by reason of a mental or physical disability (within the meaning of Code Section&nbsp;22(e)) as determined by a medical doctor satisfactory to the Committee or the later of three months after the date on which the Optionee shall die if such death shall occur during the one-year period specified herein; or</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(iv)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>the later of (a) one year after the date of termination of the Optionee&#146;s employment by reason of death of the employee, or (b) three months after the date on which the Optionee shall die if such death shall occur during the one year period specified in Subsection 9(a)(iii) hereof.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(b)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>The Committee in its sole discretion may, by giving written notice (&#147;cancellation notice&#148;), cancel effective upon the date of the consummation of any corporate transaction described in Sub&shy;sec&shy;tion 10(d) hereof, any Option that remains unexercised on such date. &nbsp;Such cancellation notice shall be given a reasonable period of time prior to the proposed date of such cancellation and may be given either before or after approval of such corporate transaction.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(c)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Upon termination of Optionee&#146;s employment as described in this Section 9, or otherwise, any Option (or portion thereof) not previously vested or not yet exercisable pursuant to Section 8 of this Plan or the vesting schedule set forth in such Option shall be immediately canceled.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt; page-break-before:always" align=justify>10.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Adjustment of Shares</U>.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(a)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>If at any time while this Plan is in effect or unexercised Options are outstanding, there shall be any increase or decrease in the number of issued and outstanding Shares through the declaration of a stock dividend or through any recapitalization resulting in a stock split, combination or exchange of Shares (other than any such exchange or issuance of Shares through which Shares are issued to effect an acquisition of another business or entity or the Company&#146;s purchase of Shares to exercise a &#147;call&#148; purchase option), then and in such event:</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(i)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>appropriate adjustment shall be made in the maximum number of Shares available for grant under this Plan, so that the same percentage of the Company&#146;s issued and outstanding Shares shall continue to be subject to being so optioned;</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(ii)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>appropriate adjustment shall be made in the number of Shares and the exercise price per Share thereof then subject to any outstanding Option, so that the same percentage of the Company&#146;s issued and outstanding Shares shall remain subject to purchase at the same aggregate exercise price; and</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(iii)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>such adjustments shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(b)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Subject to the specific terms of any Option, the Committee may change the terms of Options outstanding under this Plan, with respect to the option price or the number of Shares subject to the Options, or both, when, in the Committee&#146;s sole discretion, such adjustments become appropriate by reason of a corporate transaction described in Subsection 10(d) hereof, or otherwise.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(c)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Except as otherwise expressly provided herein, the issuance by the Company of shares of its capital stock of any class, or securities convertible into or exchangeable for shares of its capital stock of any class, either in connection with a direct or underwritten sale, or upon the exercise of rights or warrants to subscribe therefor or purchase such Shares, or upon conversion of obligations of the Company into such Shares or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of or exercise price of Shares then subject to outstanding Options granted under this Plan.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(d)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Without limiting the generality of the foregoing, the existence of outstanding Options granted under this Plan shall not affect in any manner the right or power of the Company to make, authorize or consummate (i)&nbsp;any or all adjustments, reclassifications, recapitalizations, reorganizations or other changes in the Company&#146;s capital structure or its business; (ii)&nbsp;any merger or consolidation of the Company or to which the Company is a party; (iii)&nbsp;any issuance by the Company of debt securities, or preferred or preference stock that would rank senior to or above the Shares subject to outstanding Options; (iv)&nbsp;any purchase or issuance by the Company of Shares or other classes of common stock or common equity securities; (v)&nbsp;the dissolution or liquidation of the Company; (vi)&nbsp;any sale, transfer, encumbrance, pledge or assignment of all or any part of the assets or business of the Company; or (vii)&nbsp;any other corporate act or proceeding, whether of a similar character or otherwise.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(e)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>The Optionee shall receive written notice within a reasonable time prior to the consummation of such action advising the Optionee of any of the foregoing. &nbsp;The Committee may, in the </P>
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<P style="line-height:14pt; margin:0pt; font-size:12pt; page-break-before:always" align=justify>exercise of its sole discretion, in such instances declare that any Option shall terminate as of a date fixed by the Board and give each Optionee the right to exercise his or her Option.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>11.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Transferability</U>. &nbsp;No Option or stock appreciation right granted hereunder shall be sold, pledged, assigned, hypothecated, disposed or otherwise transferred by the Optionee other than by will or the laws of descent and distribution, unless otherwise authorized by the Board, and no Option or stock appreciation right shall be exercisable during the Optionee&#146;s lifetime by any person other than the Optionee.</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>12.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Issuance of Shares</U>. &nbsp;As a condition of any sale or issuance of Shares upon exercise of any Option, the Committee may require such agreements or undertakings, if any, as the Committee may deem necessary or advisable to assure compliance with any such law or regulation including, but not limited to, the following:</P>
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<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(i)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>a representation and warranty by the Optionee to the Company, at the time any Option is exercised, that he is acquiring the Shares to be issued to him for investment and not with a view to, or for sale in connection with, the distribution of any such Shares; and</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(ii)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>an agreement and undertaking to comply with all of the terms, restrictions and provisions set forth in any then applicable stockholders&#146; agreement relating to the Shares, including, without limitation, any restrictions on transferability, any rights of first refusal and any option of the Company to &#147;call&#148; or purchase such Shares under then applicable agreements, and</P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:108pt; font-size:12pt" align=justify>(iii)</P>
<P style="line-height:14pt; margin:0pt; text-indent:144pt; font-size:12pt" align=justify>any restrictive legend or legends, to be embossed or imprinted on Share certificates, that are, in the discretion of the Committee, necessary or appropriate to comply with the provisions of any securities law or other restriction applicable to the issuance of the Shares. </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>13.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Stock Appreciation Rights</U>. &nbsp;The Committee may grant stock appreciation rights to Employees, either or tandem with Options that have been or are granted under the Plan or with respect to a number of Shares on which an Option is not granted. &nbsp;A stock appreciation right shall entitle the holder to receive, with respect to each Share as to which the right is exercised, payment in an amount equal to the excess of the Share&#146;s Fair Market Value on the date the right is exercised over its Fair Market Value on the date the right was granted. &nbsp;Such payment may be made in cash or in Shares valued at the Fair Market Value as of the date of surrender, or partly in cash and partly in Shares, as determined by the Committee in its sole discretion. &nbsp;The Committee may establish a maximum appreciation value payable for stock appreciation rights.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>14.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Restricted Stock Awards.</U> &nbsp;&nbsp;The Committee may grant restricted stock awards under the Plan in Shares or denominated in units of Shares. &nbsp;The Committee, in its sole discretion, may make such awards subject to conditions and restrictions, as set forth in the instrument evidencing the award, which may be based on continuous service with the Company or the attainment of certain performance goals related to profits, profit growth, cash-flow or shareholder returns, where such goals may be stated in absolute terms or relative to comparison companies or indices to be achieved during a period of time.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>15.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Administration of this Plan</U>.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(a)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>This Plan shall be administered by the Committee, which shall consist of not less than two Directors. &nbsp;The Committee shall have all of the powers of the Board with respect to this Plan. &nbsp;Any member of the Committee may be removed at any time, with or without cause, by resolution of the Board and any vacancy occurring in the membership of the Committee may be filled by appointment by the Board.</P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(b)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Subject to the provisions of this Plan, the Committee shall have the authority, in its sole discretion, to:&nbsp;&nbsp;(i)&nbsp;grant Options, (ii)&nbsp;determine the exercise price per Share at which Options may be exercised, (iii)&nbsp;determine the Optionees to whom, and time or times at which, Options shall be granted, (iv)&nbsp;determine the number of Shares to be represented by each Option, (v)&nbsp;determine the terms, conditions and provisions of each Option granted (which need not be identical) and, with the consent of the holder thereof, modify or amend each Option, (vi)&nbsp;defer (with the consent of the Optionee) or accelerate the exercise date of any Option, and (vii)&nbsp;make all other determinations deemed necessary or advisable for the administration of this Plan, including re-pricing, canceling and regranting Options.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(c)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>The Committee, from time to time, may adopt rules and regulations for carrying out the purposes of this Plan. &nbsp;The Committee&#146;s determinations and its interpretation and construction of any provision of this Plan shall be final, conclusive and binding upon all Optionees and any holders of any Options granted under this Plan.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(d)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Any and all decisions or determinations of the Committee shall be made either (i) by a majority vote of the members of the Committee at a meeting of the Committee or (ii) without a meeting by the unanimous written approval of the members of the Committee.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(e)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>No member of the Committee, or any Officer or Director of the Company or its Subsidiaries, shall be personally liable for any act or omission made in good faith in connection with this Plan.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>16.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Incentive Options for 10% Stockholders</U>. &nbsp;Notwithstanding any other provisions of this Plan to the contrary, an Incentive Stock Option shall not be granted to any person owning directly or indirectly (through attribution under Section 424(d) of the Code) at the date of grant, stock possessing more than 10% of the total combined voting power of all classes of stock of the Company (or of its Subsidiary) at the date of grant unless the exercise price of such Option is at least 110% of the Fair Market Value of the Shares subject to such Option on the date the Option is granted, and such Option by its terms is not exercisable after the expiration of 10 years from the date such Option is granted.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>17.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Interpretation</U>.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(a)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>This Plan shall be administered and interpreted so that all Incentive Stock Options granted under this Plan will qualify as Incentive Stock Options under Section 422 of the Code. &nbsp;If any provision of this Plan should be held invalid for the granting of Incentive Stock Options or illegal for any reason, such determination shall not affect the remaining provisions hereof, and this Plan shall be construed and enforced as if such provision had never been included in this Plan.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(b)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>This Plan shall be governed by the laws of the State of New York.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(c)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Headings contained in this Plan are for convenience only and shall in no manner be construed as part of this Plan or affect the meaning or interpretation of any part of this Plan.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt" align=justify>(d)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Any reference to the masculine, feminine, or neuter gender shall be a reference to such other gender as is appropriate.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:72pt; font-size:12pt; page-break-before:always" align=justify>(e)</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Time shall be of the essence with respect to all time periods specified for the giving of notices to the company hereunder, as well as all time periods for the expiration and termination of Options in accordance with Section 9 hereof (or as otherwise set forth in an option agreement).</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>18.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Amendment and Discontinuation of this Plan</U>. &nbsp;Either the Board or the Com&shy;mittee may from time to time amend this Plan or any Option without the consent or approval of the stockholders of the Company; provided, however, that, except to the extent provided in Section 9, no amendment or suspension of this Plan or any Option issued hereunder shall substantially impair any Option previously granted to any Optionee without the consent of such Optionee.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>19.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify><U>Termination Date</U>. &nbsp;This Plan shall terminate ten years after the date of adoption by the Board of Directors</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; font-size:12pt" align=justify>&nbsp;</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Exhibit 23.1</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">(JOSEPH I. EMAS, ATTORNEY-AT-LAW LETTERHEAD)</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Board of Directors</P>
<P style="margin:0pt">Yukon Resources Corp.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; font-size:11pt">RE:</P>
<P style="margin:0pt; text-indent:108pt">Yukon Resources Corp.</P>
<P style="line-height:13pt; margin:0pt; text-indent:108pt; font-size:11pt">Registration Statement on Form S-8</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Ladies and Gentlemen:</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>As counsel for the Company, I have examined the Company&#146;s certificate of incorporation, by-laws, and such other corporate records, documents and proceedings and such questions of laws I have deemed relevant for the purpose of this opinion.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>I have also, as counsel for the Company, examined the Registration Statement (the &#147;Registration Statement&quot;) of your Company on Form S-8, covering the registration under the Securities Act of 1933 of up to 2,000,000 shares of Common Stock, $.001 par value of the Company.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>My review has also included the form of prospectus for the issuance of such securities (the &quot;Prospectus&quot;) filed with the Registration Statement.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>On the basis of such examination, I am of the opinion that:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>1. The Company is a corporation duly authorized and validly existing and in good standing under the laws of the State of Delaware, with corporate power to conduct its business as described in the Registration Statement.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>2. The Company has an authorized capitalization of 75,000,000 shares of Common Stock.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>3. The shares of Common Stock currently issued and outstanding described in the Registration Statement are duly and validly authorized and, upon the issuance thereof, will be duly and validly issued as fully paid and non-assessable.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>This opinion includes my opinion on Nevada law including, all applicable provisions of Nevada statutes, and reported judicial decisions interpreting those laws.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=justify>I hereby consent to the use of my name in the Registration Statement and Prospectus and I also consent to the filing of this opinion as an exhibit thereto.</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt">Very truly yours,</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; font-size:11pt">March
9, 2006</P>
<P style="line-height:13pt; margin:0pt; text-indent:108pt; font-size:11pt">/s/ JOSEPH I. EMAS</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; text-indent:36pt; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:13pt; margin:0pt; text-indent:108pt; font-size:11pt">____________________________</P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:-13pt; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="line-height:13pt; margin:0pt; text-indent:72pt; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;JOSEPH I. EMAS, ESQUIRE</P>
<P style="margin:0pt"><BR>
<BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always" align="center"><img src="manningelliot.gif" alt="[yukons8030906002.gif]" align=middle height=195 width=800></P>
<P style="margin:0pt"><BR></P>
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<P style="margin:0pt"><BR></P>
<P style="margin:0pt; font-family:Arial" align=center><FONT FACE="Arial">Exhibit 23.2</FONT></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:7.65pt; margin:0pt; padding-right:-1pt; font-family:Arial; font-size:6pt" align=center>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; font-family:Arial" align=justify>We consent to the incorporation by reference of our audit report dated September 8, 2005 which is included in the Annual Report on Form 10-KSB for the year ended June&nbsp;30, 2005 of Yukon Resources Corp. in the Company&#146;s Registration Statement on Form S-8 pertaining to the 2006 Stock Option Plan.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; font-family:Arial"><I>/s/ &#147;Manning Elliott LLP&#148;</I></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:14pt; margin-top:8pt; margin-bottom:0pt; font-family:Arial; font-size:12pt" align=justify>CHARTERED ACCOUNTANTS</P>
<P style="line-height:14pt; margin-top:8pt; margin-bottom:0pt; font-family:Arial; font-size:12pt" align=justify>Vancouver, Canada</P>
<P style="margin-top:8pt; margin-bottom:0pt; font-family:Arial">March 9, 2006</P>
<P style="margin:5pt" align=center><BR></P>
<P style="margin:5pt" align=center><BR>
<BR></P>
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{"company-data": {"conformed-name": "Yukon Resources Corp.", "cik": "0001302084", "assigned-sic": "1040", "irs-number": "200803515", "state-of-incorporation": "NV", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-132294", "film-number": "06674889"}, "business-address": {"street1": "206-475 HOWE ST.", "city": "VANCOUVER", "state": "A1", "zip": "V6C 2B3", "phone": "604 629-1075"}, "mail-address": {"street1": "206-475 HOWE ST.", "city": "VANCOUVER", "state": "A1", "zip": "V6C 2B3"}}
CC Filed by Filing Services Canada Inc. 403-717-3898
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
YUKON RESOURCES CORP.
Nevada
1000
20-0803515
(State or Other Jurisdiction of
Incorporation or Organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer Identification No.)
206-475 Howe Street, Vancouver, British Columbia, Canada
V6C 2B3
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:  (604) 629-1075
2006 Stock Option Plan
(Full title of the plan)
Copies of all communications, including all communications sent to the agent for service, should be sent to:
Joseph I. Emas, Attorney at Law
1224 Washington Avenue
Miami Beach, Florida 33139
Telephone: 305.531.1174
CALCULATION OF REGISTRATION FEE
Title of Securities to
be Registered
Amount to be
Registered
Proposed
Maximum
Offering
Price Per Share
Proposed
Maximum
Aggregate
Offering Price
Amount of
Registration
Fee
Common Stock
2,000,000
(1)
$0.95
(1)
$1,900,000
(2)
$205.
(2)
(1)
We are registering an aggregate of up to 2,000,000 of our common shares, issuable pursuant to our 2006 Stock Option Plan. Pursuant to Rule 416(a) under the Securities Act of 1933, as amended (the "Securities Act"), this Registration Statement shall also cover any additional shares of Common Stock attributable to these registered shares which become issuable under the Yukon resources 2006 Stock Option Plan by reason of any stock dividend, stock split, recapitalization or other similar transaction effected without the Registrant's receipt of consideration which results in an increase in the number of the outstanding shares of the Registrant's Common Stock.
(2)
The price is estimated in accordance with Rule 457(h)(1) under the Securities Act of 1933, as amended, solely for the purpose of calculating the registration fee, based on the average of the bid and asked price of the common stock of Yukon resources Corp. as reported on the National Association of Securities Dealers Inc.'s OTC Bulletin Board on March 6, 2006.
-2-
Part I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
Information specified in Part I of Form S-8 (Items 1 and 2) will be sent or given to the 2006 Plan participants as specified by Rule 428(b)(1) under the Securities Act of 1933.
To date, the following individuals have received options pursuant to the 2006 Stock option Plan:
Douglas Merrick
225,000
Kevin Moe
50,250
Michael McCullagh
150,000
Kerry McCullagh
300,000
David Parfitt
255,000
Randall Pow
255,000
Additional options will be granted as directed by the Board of Directors of Yukon Resources Corp.
Part II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
ITEM 3. INCORPORATION OF DOCUMENTS BY REFERENCE.
1. Our Annual Report on Form 10-KSB filed on September 30, 2005; and
2. The description of our company's common stock contained these exhibits are incorporated herein by this reference to the Company's registration statement of Form SB-2, filed on September 14, 2004; and
3. Our Quarterly Reports on Form 10-QSB filed October 31, 2005, and January 31, 2006.
All documents subsequently filed by the Registrant pursuant to Sections 13(a), 13(c), 14, and 15(d) of the 1934 Act, prior to the filing of a post-effective amendment which indicates that all securities offered hereby have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference herein and to be a part hereof from the date of the filing of such documents.
Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes hereof to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part hereof.
ITEM 4. DESCRIPTION OF SECURITIES.
Not applicable; see Item 3 above.
ITEM 5. INTERESTS OF NAMED EXPERTS AND COUNSEL.
The legality of the shares of Common Stock registered under this Registration Statement are being passed on for the Registrant by Joseph I. Emas, Esq., the Registrant's legal counsel.
ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Nevada corporation law provides that:
- a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit or proceeding if he acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful;
- a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including amounts paid in settlement and attorneys' fees actually and reasonably incurred by him in connection with the defense or settlement of the action or suit if he acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation. Indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper; and
- to the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding, or in defense of any claim, issue or matter therein, the corporation shall indemnify him against expenses, including attorneys' fees, actually and reasonably incurred by him in connection with the defense.
Our bylaws provide that we will advance all expenses incurred to any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suite or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he is or was our director or officer, or is or was serving at our request as a director or executive officer of another company, partnership, joint venture, trust or other enterprise, prior to the final disposition of the proceeding, promptly following request. This advanced of expenses is to be made upon receipt of an undertaking by or on behalf of such person to repay said amounts should it be ultimately determined that the person was not entitled to be indemnified under our bylaws or otherwise.
Our bylaws also provide that no advance shall be made by us to any officer in any action, suit or proceeding, whether civil, criminal, administrative or investigative, if a determination is reasonably and promptly made: (a) by the board of directors by a majority vote of a quorum consisting of directors who were not parties to the proceeding; or (b) if such quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, by independent legal counsel in a written opinion, that the facts known to the decision-making party at the time such determination is made demonstrate clearly and convincingly that such person acted in bad faith or in a manner that such person did not believe to be in or not opposed to our best interests.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of our company under Nevada law or otherwise, we have been advised the opinion of the Securities and Exchange Commission is that such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event a claim for indemnification against such liabilities (other than payment by us for expenses incurred or paid by a director, officer or controlling person of our company in successful defense of any action, suit, or proceeding) is asserted by a director, officer or controlling person in connection with the securities being registered, we will, unless in the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction, the question of whether such indemnification by it is against public policy in said Act and will be governed by the final adjudication of such issue.
ITEM 7. EXEMPTION FROM REGISTRATION CLAIMED.
Not Applicable.
ITEM 8. EXHIBITS.
4.1  2006 Stock option Plan..
5.1  Opinion of Joseph I. Emas, Esq.
23.1 Consent of Joseph I. Emas, Esq. (included in Exhibit 5)
23.2 Consent of Manning Elliot Chartered Accountants, independent registered public accounting firm.
ITEM 9. UNDERTAKINGS.
The undersigned registrant hereby undertakes:
(a) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions described above, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.
(b) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement;
(2) To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
(3) To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually, or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement; notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective Registration Statement; and
(4) To include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement
(i) That, for the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof; and
(ii) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the Offering.
(c) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the Registration Statement shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, on March 8, 2006.
YUKON RESOURCES CORP.
Dated:  March
9, 2006
By: /s/ Thornton J. Donaldson
___________________
Thornton J. Donaldson,
President, Principal Executive Officer and Director
Dated:  March
9, 2006
By: /s/ Thornton J. Donaldson
___________________
Thornton J. Donaldson,
President, Principal Accounting Officer and Director
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Thornton J. Donaldson, his true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, and any other regulatory authority, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their substitutes, may lawfully do or cause to be done by virtue hereof.
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons in the capacities and on the dates indicated.
Signatures
Title
Date
/S/ Thornton J. Donaldson
Thornton J. Donaldson
President, Principal Executive Officer, Principal Accounting Officer, Director
March 9, 2006
/S/ Jeff Murdock
Jeff Murdock
Secretary and Director
March 9, 2006
Exhibit 4.1
______________________________________
YUKON RESOURCES CORP.
2006 STOCK OPTION PLAN
______________________________________
1.
Purpose
.  The purpose of this Plan is to advance the interests of Yukon Resources Corp., a Nevada corporation (the "Company"), by providing an additional incentive to attract, retain and motivate highly qualified and competent persons who are key to the Company, including key employees, consultants, independent contractors, Officers and Directors, and upon whose efforts and judgment the success of the Company and its Subsidiaries is largely dependent, by authorizing the grant of options to purchase Common Stock of the Company and other related benefits to persons who are eligible to participate hereunder, thereby encouraging stock ownership in the Company by such persons, all upon and subject to the terms and conditions of this Plan.
2.
Definitions
.  As used herein, the following terms shall have the meanings indicated:
(a)
"Board" shall mean the Board of Directors of the Company.
(b)
"Cause" shall mean any of the following:
(i)
a determination by the Company that there has been a willful, reckless or grossly negligent failure by the Optionee to perform his or her duties as an employee of the Company;
(ii)
a determination by the Company that there has been a willful breach by the Optionee of any of the material terms or provisions of any employment agreement between such Optionee and the Company;
(iii)
any conduct by the Optionee that either results in his or her conviction of a felony under the laws of the United States of America or any state thereof, or of an equivalent crime under the laws of any other jurisdiction;
(iv)
a determination by the Company that the Optionee has committed an act or acts involving fraud, embezzlement, misappropriation, theft, breach of fiduciary duty or material dishonesty against the Company, its properties or personnel;
(v)
any act by the Optionee that the Company determines to be in willful or wanton disregard of the Company's best interests, or which results, or is intended to result, directly or indirectly, in improper gain or personal enrichment of the Optionee at the expense of the Company;
(vi)
a determination by the Company that there has been a willful, reckless or grossly negligent failure by the Optionee to comply with any rules, regulations, policies or procedures of the Company, or that the Optionee has engaged in any act, behavior or conduct demonstrating a deliberate and material violation or disregard of standards of behavior that the Company has a right to expect of its employees; or
(vii)
if the Optionee, while employed by the Company and for two years thereafter, violates a confidentiality and/or noncompete agreement with the Company, or fails to safeguard, divulges,
communicates, uses to the detriment of the Company or for the benefit of any person or persons, or misuses in any way, any Confidential Information;
provided, however,
that, if the Optionee has entered into a written employment agreement with the Company which remains effective and which expressly provides for a termination of such Optionee's employment for "cause," the term "Cause" as used herein shall have the meaning as set forth in the Optionee's employment agreement in lieu of the definition of "Cause" set forth in this Section 2(b).
(c)
"Change of Control" shall mean the acquisition by any person or group (as that term is defined in the Exchange Act, and the rules promulgated pursuant to that act) in a single transaction or a series of transactions of thirty percent (30%) or more in voting power of the outstanding stock of the Company and a change of the composition of the Board of Directors so that, within two years after the acquisition took place, a majority of the members of the Board of Directors of the Company, or of any corporation with which the Company may be consolidated or merged, are persons who were not directors or officers of the Company or one of its Subsidiaries immediately prior to the acquisition, or to the first of a series of transactions which resulted in the acquisition of thirty percent (30%) or more in voting power of the outstanding stock of the Company.
(d)
"Code" shall mean the Internal Revenue Code of 1986, as amended.
(e)
"Committee" shall mean the stock option committee appointed by the Board or, if not appointed, the Board.
(f)
"Common Stock" shall mean the Company's Common Stock, par value $.001 per share.
(g)
"Director" shall mean a member of the Board.
(h)
"Employee" shall mean any person, including officers, directors, consultants and independent contractors employed by the Company or any parent or Subsidiary of the Company within the meaning of Section 3401(c) of the regulators promulgated thereunder.
(i)
"Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.
(j)
"Fair Market Value" of a Share on any date of reference shall be the Closing Price of a share of Common Stock on the business day immediately preceding such date, unless the Committee in its sole discretion shall determine otherwise in a fair and uniform manner.  For this purpose, the "Closing Price" of the Common Stock on any business day shall be (i) if the Common Stock is listed or admitted for trading on any United States national securities exchange, or if actual transactions are otherwise reported on a consolidated transaction reporting system, the last reported sale price of the Common Stock on such exchange or reporting system, as reported in any newspaper of general circulation, (ii) if the Common Stock is quoted on The Nasdaq Stock Market ("Nasdaq"), or any similar system of automated dissemination of quotations of securities prices in common use, the mean between the closing high bid and low asked quotations for such day of the Common Stock on such system, or (iii) if neither clause (i) nor (ii) is applicable, the mean between the high bid and low asked quotations for the Common Stock as reported by the National Quotation Bureau, Incorporated if at least two securities dealers have inserted both bid and asked quotations for the Common Stock on at least five of the 10 preceding days.  If the information set forth in clauses (i) through (iii) above is unavailable or inapplicable to the Company (e.g., if the Company's Common Stock is not then publicly traded or quoted), then the "Fair
Market Value" of a Share shall be the fair market value (i.e., the price at which a willing seller would sell a Share to a willing buyer when neither is acting under compulsion and when both have reasonable knowledge of all relevant facts) of a share of the Common Stock on the business day immediately preceding such date as the Committee in its sole and absolute discretion shall determine in a fair and uniform manner.
(k)
"Incentive Stock Option" shall mean an incentive stock option as defined in Section 422 of the Code.
(l)
"Non-Statutory Stock Option" or "Nonqualified Stock Option" shall mean an Option which is not an Incentive Stock Option.
(m)
"Officer" shall mean the Company's chairman, president, principal financial officer, principal accounting officer (or, if there is no such accounting officer, the controller), any vice-president of the Company in charge of a principal business unit, division or function (such as sales, administration or finance), any other officer who performs a policy-making function, or any other person who performs similar policy-making functions for the Company.  Officers of Subsidiaries shall be deemed Officers of the Company if they perform such policy-making functions for the Company.  As used in this paragraph, the phrase "policy-making function" does not include policy-making functions that are not significant.  Unless specified otherwise in a resolution by the Board, an "executive officer" pursuant to Item 401(b) of Regulation S-K (17 C.F.R. § 229.401(b)) shall be only such person designated as an "Officer" pursuant to the foregoing provisions of this paragraph.
(n)
"Option" (when capitalized) shall mean any stock option granted under this Plan.
(o)
"Optionee" shall mean a person to whom an Option is granted under this Plan or any person who succeeds to the rights of such person under this Plan by reason of the death of such person.
(p)
"Plan" shall mean this 2006 Stock Option Plan of the Company, which Plan shall be effective upon approval by the Board, subject to approval, within 12 months of the date thereof by holders of a majority of the Company's issued and outstanding Common Stock of the Company.
(q)
"Share" or "Shares" shall mean a share or shares, as the case may be, of the Common Stock, as adjusted in accordance with Section 10 of this Plan.
(r)
"Subsidiary" shall mean any corporation (other than the Company) in any unbroken chain of corporations beginning with the Company if, at the time of the granting of the Option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50 percent or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.
3.
Shares and Options
.  Subject to adjustment in accordance with Section 10 hereof, the Company may issue up to two million (2,000,000) Shares from Shares held in the Company's treasury or from authorized and unissued Shares through the exercise of Options issued pursuant to the provisions of this Plan.  If any Option granted under this Plan shall terminate, expire, or be canceled, forfeited or surrendered as to any Shares, the Shares relating to such lapsed Option shall be available for issuance pursuant to new Options subsequently granted under this Plan.  Upon the grant of any Option hereunder, the authorized and unissued Shares to which such Option relates shall be reserved for issuance to permit exercise under this Plan.  Subject to the provisions
of Section 14 hereof, an Option granted hereunder shall be either an Incentive Stock Option or a Non-Statutory Stock Option as determined by the Committee at the time of grant of such Option and shall clearly state whether it is an Incentive Stock Option or Non-Statutory Stock Option.  All Incentive Stock Options shall be granted within 10 years from the effective date of this Plan.
4.
Limitations
.  Options otherwise qualifying as Incentive Stock Options hereunder will not be treated as Incentive Stock Options to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of the Shares, with respect to which Options meeting the requirements of Code Sec­tion 422(b) are exercisable for the first time by any individual during any calendar year (under all stock option or similar plans of the Company and any Subsidiary), exceeds $100,000.
5.
Conditions for Grant of Options
.
(a)
Each Option shall be evidenced by an option agreement that may contain any term deemed necessary or desirable by the Committee, provided such terms are not inconsistent with this Plan or any applicable law.  Optionees shall be those persons selected by the Committee from the class of all regular Employees of the Company or its Subsidiaries, including Employee Directors and Officers who are regular or former regular employees of the Company, Directors who are not regular employees of the Company, as well as consultants to the Company.  Any person who files with the Committee, in a form satisfactory to the Committee, a written waiver of eligibility to receive any Option under this Plan shall not be eligible to receive any Option under this Plan for the duration of such waiver.
(b)
In granting Options, the Committee shall take into consideration the contribution the person has made, or is expected to make, to the success of the Company or its Subsidiaries and such other factors as the Committee shall determine.  The Committee shall also have the authority to consult with and receive recommendations from Officers and other personnel of the Company and its Subsidiaries with regard to these matters.  The Committee may from time to time in granting Options under this Plan prescribe such terms and conditions concerning such Options as it deems appropriate, provided that such terms and conditions are not more favorable to an Optionee than those expressly permitted herein; provided further, however, that to the extent not cancelled pursuant to Section 9(b) hereof, upon a Change in Control, any Options that have not yet vested, may, in the sole discretion of the Committee, vest upon such Change in Control.
(c)
The Options granted to employees under this Plan shall be in addition to regular salaries, pension, life insurance or other benefits related to their employment with the Company or its Subsidiaries.  Neither this Plan nor any Option granted under this Plan shall confer upon any person any right to employment or continuance of employment (or related salary and benefits) by the Company or its Subsidiaries.
6.
Exercise Price
.  The exercise price per Share of any Option shall be any price determined by the Committee but in no event shall the exercise price per Share of any Option be less than the Fair Market Value of the Shares underlying such Option on the date such Option is granted and, in the case of an Incentive Stock Option granted to a 10% stockholder, the per Share exercise price will not be less than 110% of the Fair Market Value.  Re-granted Options, or Options which are canceled and then re-granted covering such canceled Options, will, for purposes of this Section 6, be deemed to have been granted on the date of the re-granting.
7.
Exercise of Options
.
(a)
An Option shall be deemed exercised when (i) the Company has received written notice of such exercise in accordance with the terms of the Option, (ii) full payment of the aggregate option price of the Shares as to which the Option is exercised has been made, (iii) the Optionee has agreed to be bound by the terms, provisions and conditions of any applicable stockholders' agree­ment, and (iv) arrangements that are satisfactory to the Committee in its sole discretion have been made for the Optionee's payment to the Company of the amount that is necessary for the Company or the Subsidiary employing the Optionee to withhold in accordance with applicable Federal or state tax withholding requirements.  Unless further limited by the Committee in any Option, the exercise price of any Shares purchased pursuant to the exercise of such Option shall be paid in cash, by certified or official bank check, by money order, with Shares or by a combination of the above; provided, however, that the Committee in its sole discretion may accept a personal check in full or partial payment of any Shares.  The Company in its sole discretion may, on an individual basis or pursuant to a general program established by the Committee in connection with this Plan, lend money to an Optionee to exercise all or a portion of the Option granted hereunder.  If the exercise price is paid in whole or part with the Optionee's promissory note, such note shall (i) provide for full recourse to the maker, (ii) be collateralized by the pledge of the Shares that the Optionee purchases upon exercise of such Option, (iii) bear interest at a rate no less than the rate of interest payable by the Company to its principal lender, and (iv) contain such other terms as the Committee in its sole discretion shall require.
(b)
No Optionee shall be deemed to be a holder of any Shares subject to an Option unless and until a stock certificate or certificates for such Shares are issued to such person(s) under the terms of this Plan.  No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to the date such stock certificate is issued, except as expressly provided in Section 10 hereof.
(c)
Any Option may, in the discretion of the Committee, be exercised pursuant to a "cashless" or "net issue" exercise.  In lieu of exercising the Option as specified in subsection (a) above, the Optionee may pay in whole or in part with Shares, the number of which shall be determined by dividing (a) the aggregate Fair Value of such Shares otherwise issuable upon exercise of the Option minus the aggregate Exercise Price of such Option by (b) the Fair Value of one such Share, or the Optionee may pay in whole or in part through a reduction in the number of Shares received through the exercise of the Option equal to the quotient of the (a) aggregate Fair Value of all the Shares issuable upon exercise of the Option minus the aggregate Exercise Price of such Option (b) divided by the Fair Value of one such share.  If the exercise price is paid in whole or in part with Shares, the value of the Shares surrendered shall be their Fair Market Value on the date the Option is exercised.
8.
Exercisability of Options
.  Any Option shall become exercisable in such amounts, at such intervals, upon such events or occurrences and upon such other terms and conditions as shall be provided in an individual Option agreement evidencing such Option, except as otherwise provided in Section 5(b) or this Section 8.
(a)
The expiration date(s) of an Option shall be determined by the Committee at the time of grant, but in no event shall an Option be exercisable after the expiration of 10 years from the date of grant of the Option.
(b)
Unless otherwise expressly provided in any Option as approved by the Committee, notwithstanding the exercise schedule set forth in any Option, each outstanding Option, may, in the sole discretion of the Committee, become fully exercisable upon the date of the occurrence of any Change of Control, but, unless otherwise expressly provided in any Option, no earlier than six months after the date of grant, and if and only if Optionee is in the employ of the Company on such date.
(c)
The Committee may in its sole discretion accelerate the date on which any Option may be exercised and may accelerate the vesting of any Shares subject to any Option or previously acquired by the exercise of any Option.
9.
Termination of Option Period
.
(a)
Unless otherwise expressly provided in any Option, the unexercised portion of any Option shall automatically and without notice immediately terminate and become forfeited, null and void at the time of the earliest to occur of the following:
(i)
three months after the date on which the Optionee's employment is terminated for any reason other than by reason of (A) Cause, (B) the termination of the Optionee's employment with the Company by such Optionee following less than 60 days' prior written notice to the Company of such termination (an "Improper Termination"), (C) a mental or physical disability (within the meaning of Section 22(e) of the Code) as determined by a medical doctor satisfactory to the Committee, or (D) death;
(ii)
immediately upon (A) the termination by the Company of the Optionee's employment for Cause, or (B) an Improper Termination;
(iii)
one year after the date on which the Optionee's employment is terminated by reason of a mental or physical disability (within the meaning of Code Section 22(e)) as determined by a medical doctor satisfactory to the Committee or the later of three months after the date on which the Optionee shall die if such death shall occur during the one-year period specified herein; or
(iv)
the later of (a) one year after the date of termination of the Optionee's employment by reason of death of the employee, or (b) three months after the date on which the Optionee shall die if such death shall occur during the one year period specified in Subsection 9(a)(iii) hereof.
(b)
The Committee in its sole discretion may, by giving written notice ("cancellation notice"), cancel effective upon the date of the consummation of any corporate transaction described in Sub­sec­tion 10(d) hereof, any Option that remains unexercised on such date.  Such cancellation notice shall be given a reasonable period of time prior to the proposed date of such cancellation and may be given either before or after approval of such corporate transaction.
(c)
Upon termination of Optionee's employment as described in this Section 9, or otherwise, any Option (or portion thereof) not previously vested or not yet exercisable pursuant to Section 8 of this Plan or the vesting schedule set forth in such Option shall be immediately canceled.
10.
Adjustment of Shares
.
(a)
If at any time while this Plan is in effect or unexercised Options are outstanding, there shall be any increase or decrease in the number of issued and outstanding Shares through the declaration of a stock dividend or through any recapitalization resulting in a stock split, combination or exchange of Shares (other than any such exchange or issuance of Shares through which Shares are issued to effect an acquisition of another business or entity or the Company's purchase of Shares to exercise a "call" purchase option), then and in such event:
(i)
appropriate adjustment shall be made in the maximum number of Shares available for grant under this Plan, so that the same percentage of the Company's issued and outstanding Shares shall continue to be subject to being so optioned;
(ii)
appropriate adjustment shall be made in the number of Shares and the exercise price per Share thereof then subject to any outstanding Option, so that the same percentage of the Company's issued and outstanding Shares shall remain subject to purchase at the same aggregate exercise price; and
(iii)
such adjustments shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive.
(b)
Subject to the specific terms of any Option, the Committee may change the terms of Options outstanding under this Plan, with respect to the option price or the number of Shares subject to the Options, or both, when, in the Committee's sole discretion, such adjustments become appropriate by reason of a corporate transaction described in Subsection 10(d) hereof, or otherwise.
(c)
Except as otherwise expressly provided herein, the issuance by the Company of shares of its capital stock of any class, or securities convertible into or exchangeable for shares of its capital stock of any class, either in connection with a direct or underwritten sale, or upon the exercise of rights or warrants to subscribe therefor or purchase such Shares, or upon conversion of obligations of the Company into such Shares or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of or exercise price of Shares then subject to outstanding Options granted under this Plan.
(d)
Without limiting the generality of the foregoing, the existence of outstanding Options granted under this Plan shall not affect in any manner the right or power of the Company to make, authorize or consummate (i) any or all adjustments, reclassifications, recapitalizations, reorganizations or other changes in the Company's capital structure or its business; (ii) any merger or consolidation of the Company or to which the Company is a party; (iii) any issuance by the Company of debt securities, or preferred or preference stock that would rank senior to or above the Shares subject to outstanding Options; (iv) any purchase or issuance by the Company of Shares or other classes of common stock or common equity securities; (v) the dissolution or liquidation of the Company; (vi) any sale, transfer, encumbrance, pledge or assignment of all or any part of the assets or business of the Company; or (vii) any other corporate act or proceeding, whether of a similar character or otherwise.
(e)
The Optionee shall receive written notice within a reasonable time prior to the consummation of such action advising the Optionee of any of the foregoing.  The Committee may, in the
exercise of its sole discretion, in such instances declare that any Option shall terminate as of a date fixed by the Board and give each Optionee the right to exercise his or her Option.
11.
Transferability
.  No Option or stock appreciation right granted hereunder shall be sold, pledged, assigned, hypothecated, disposed or otherwise transferred by the Optionee other than by will or the laws of descent and distribution, unless otherwise authorized by the Board, and no Option or stock appreciation right shall be exercisable during the Optionee's lifetime by any person other than the Optionee.
12.
Issuance of Shares
.  As a condition of any sale or issuance of Shares upon exercise of any Option, the Committee may require such agreements or undertakings, if any, as the Committee may deem necessary or advisable to assure compliance with any such law or regulation including, but not limited to, the following:
(i)
a representation and warranty by the Optionee to the Company, at the time any Option is exercised, that he is acquiring the Shares to be issued to him for investment and not with a view to, or for sale in connection with, the distribution of any such Shares; and
(ii)
an agreement and undertaking to comply with all of the terms, restrictions and provisions set forth in any then applicable stockholders' agreement relating to the Shares, including, without limitation, any restrictions on transferability, any rights of first refusal and any option of the Company to "call" or purchase such Shares under then applicable agreements, and
(iii)
any restrictive legend or legends, to be embossed or imprinted on Share certificates, that are, in the discretion of the Committee, necessary or appropriate to comply with the provisions of any securities law or other restriction applicable to the issuance of the Shares.
13.
Stock Appreciation Rights
.  The Committee may grant stock appreciation rights to Employees, either or tandem with Options that have been or are granted under the Plan or with respect to a number of Shares on which an Option is not granted.  A stock appreciation right shall entitle the holder to receive, with respect to each Share as to which the right is exercised, payment in an amount equal to the excess of the Share's Fair Market Value on the date the right is exercised over its Fair Market Value on the date the right was granted.  Such payment may be made in cash or in Shares valued at the Fair Market Value as of the date of surrender, or partly in cash and partly in Shares, as determined by the Committee in its sole discretion.  The Committee may establish a maximum appreciation value payable for stock appreciation rights.
14.
Restricted Stock Awards.
The Committee may grant restricted stock awards under the Plan in Shares or denominated in units of Shares.  The Committee, in its sole discretion, may make such awards subject to conditions and restrictions, as set forth in the instrument evidencing the award, which may be based on continuous service with the Company or the attainment of certain performance goals related to profits, profit growth, cash-flow or shareholder returns, where such goals may be stated in absolute terms or relative to comparison companies or indices to be achieved during a period of time.
15.
Administration of this Plan
.
(a)
This Plan shall be administered by the Committee, which shall consist of not less than two Directors.  The Committee shall have all of the powers of the Board with respect to this Plan.  Any member of the Committee may be removed at any time, with or without cause, by resolution of the Board and any vacancy occurring in the membership of the Committee may be filled by appointment by the Board.
(b)
Subject to the provisions of this Plan, the Committee shall have the authority, in its sole discretion, to:  (i) grant Options, (ii) determine the exercise price per Share at which Options may be exercised, (iii) determine the Optionees to whom, and time or times at which, Options shall be granted, (iv) determine the number of Shares to be represented by each Option, (v) determine the terms, conditions and provisions of each Option granted (which need not be identical) and, with the consent of the holder thereof, modify or amend each Option, (vi) defer (with the consent of the Optionee) or accelerate the exercise date of any Option, and (vii) make all other determinations deemed necessary or advisable for the administration of this Plan, including re-pricing, canceling and regranting Options.
(c)
The Committee, from time to time, may adopt rules and regulations for carrying out the purposes of this Plan.  The Committee's determinations and its interpretation and construction of any provision of this Plan shall be final, conclusive and binding upon all Optionees and any holders of any Options granted under this Plan.
(d)
Any and all decisions or determinations of the Committee shall be made either (i) by a majority vote of the members of the Committee at a meeting of the Committee or (ii) without a meeting by the unanimous written approval of the members of the Committee.
(e)
No member of the Committee, or any Officer or Director of the Company or its Subsidiaries, shall be personally liable for any act or omission made in good faith in connection with this Plan.
16.
Incentive Options for 10% Stockholders
.  Notwithstanding any other provisions of this Plan to the contrary, an Incentive Stock Option shall not be granted to any person owning directly or indirectly (through attribution under Section 424(d) of the Code) at the date of grant, stock possessing more than 10% of the total combined voting power of all classes of stock of the Company (or of its Subsidiary) at the date of grant unless the exercise price of such Option is at least 110% of the Fair Market Value of the Shares subject to such Option on the date the Option is granted, and such Option by its terms is not exercisable after the expiration of 10 years from the date such Option is granted.
17.
Interpretation
.
(a)
This Plan shall be administered and interpreted so that all Incentive Stock Options granted under this Plan will qualify as Incentive Stock Options under Section 422 of the Code.  If any provision of this Plan should be held invalid for the granting of Incentive Stock Options or illegal for any reason, such determination shall not affect the remaining provisions hereof, and this Plan shall be construed and enforced as if such provision had never been included in this Plan.
(b)
This Plan shall be governed by the laws of the State of New York.
(c)
Headings contained in this Plan are for convenience only and shall in no manner be construed as part of this Plan or affect the meaning or interpretation of any part of this Plan.
(d)
Any reference to the masculine, feminine, or neuter gender shall be a reference to such other gender as is appropriate.
(e)
Time shall be of the essence with respect to all time periods specified for the giving of notices to the company hereunder, as well as all time periods for the expiration and termination of Options in accordance with Section 9 hereof (or as otherwise set forth in an option agreement).
18.
Amendment and Discontinuation of this Plan
.  Either the Board or the Com­mittee may from time to time amend this Plan or any Option without the consent or approval of the stockholders of the Company; provided, however, that, except to the extent provided in Section 9, no amendment or suspension of this Plan or any Option issued hereunder shall substantially impair any Option previously granted to any Optionee without the consent of such Optionee.
19.
Termination Date
.  This Plan shall terminate ten years after the date of adoption by the Board of Directors
Exhibit 23.1
(JOSEPH I. EMAS, ATTORNEY-AT-LAW LETTERHEAD)
Board of Directors
Yukon Resources Corp.
RE:
Yukon Resources Corp.
Registration Statement on Form S-8
Ladies and Gentlemen:
As counsel for the Company, I have examined the Company's certificate of incorporation, by-laws, and such other corporate records, documents and proceedings and such questions of laws I have deemed relevant for the purpose of this opinion.
I have also, as counsel for the Company, examined the Registration Statement (the "Registration Statement") of your Company on Form S-8, covering the registration under the Securities Act of 1933 of up to 2,000,000 shares of Common Stock, $.001 par value of the Company.
My review has also included the form of prospectus for the issuance of such securities (the "Prospectus") filed with the Registration Statement.
On the basis of such examination, I am of the opinion that:
1. The Company is a corporation duly authorized and validly existing and in good standing under the laws of the State of Delaware, with corporate power to conduct its business as described in the Registration Statement.
2. The Company has an authorized capitalization of 75,000,000 shares of Common Stock.
3. The shares of Common Stock currently issued and outstanding described in the Registration Statement are duly and validly authorized and, upon the issuance thereof, will be duly and validly issued as fully paid and non-assessable.
This opinion includes my opinion on Nevada law including, all applicable provisions of Nevada statutes, and reported judicial decisions interpreting those laws.
I hereby consent to the use of my name in the Registration Statement and Prospectus and I also consent to the filing of this opinion as an exhibit thereto.
Very truly yours,
March
9, 2006
/s/ JOSEPH I. EMAS
____________________________
JOSEPH I. EMAS, ESQUIRE
Exhibit 23.2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference of our audit report dated September 8, 2005 which is included in the Annual Report on Form 10-KSB for the year ended June 30, 2005 of Yukon Resources Corp. in the Company's Registration Statement on Form S-8 pertaining to the 2006 Stock Option Plan.
/s/ "Manning Elliott LLP"
CHARTERED ACCOUNTANTS
Vancouver, Canada
March 9, 2006