Under the terms of the Agreement, Canyon has agreed not to exercise its rights to terminate the Option Agreement with Falcon as a result of Falcon’s failure to pay the 2016 BLM Fee, the 2015 Lease Payment or the 2015 Cash Option Payment provided that Falcon:
- issues and delivers to Canyon the 750,000 common shares of Falcon issuable to Canyon as the first and second anniversary share issuances under the Option Agreement;
- pays to Canyon the 2016 BLM Fee and Canyon’s legal fees in connection with the 2016 BLM filings on or before September 30, 2015; and
- pays to Canyon the 2015 Cash Option Payment and the 2015 Lease Payment on or before September 30, 2015;
If Falcon fails to make the above payments and share issuances on the dates set forth above, Canyon will be entitled to terminate the Option Agreement.
