Option Agreement Assignment and Exercise Sample Clauses
The Option Agreement Assignment and Exercise clause defines the rules and procedures for transferring (assigning) an option agreement and for exercising the rights granted under that option. Typically, this clause outlines whether the original holder of the option can assign their rights to another party, and the steps required to formally exercise the option, such as providing written notice or fulfilling certain conditions. Its core function is to ensure clarity and control over who can benefit from the option and how it can be activated, thereby preventing unauthorized transfers and disputes over the exercise process.
Option Agreement Assignment and Exercise. 4.2.1 MSB and LPI shall execute the Option Agreement Assignment; with the consent of the Owners of the Optioned Mining Concessions at a price which is the equivalent of the market value of the LPI Shares at tf1e date of execution of the Option Agreement Assignment (the ''Option Agreement Assignment Price"), no later than October 15, 2016, with the effect that LPI shall become the beneficiary of said option. The Option Agreement Assignment Price shall be payable upon the later of (a) satisfaction of the Condition Precedent; and (b) five (5) Business Days after LITHIUM's general shareholders meeting which approves the issuance of the LPI Shares and the transactions set forth herein. Pursuant to the Option Agreement, LPI shall become the beneficiary of a mining option, in terms of Article 169 of the Chilean Mining Code, to acquire the Optioned Mining Concessions which shall be exercised no later than October 15th, 2016 and the purchase price of the Optioned Mining Concessions shall be USD 5,220,000. The Option Agreement Assignment shall be excited on the third (3rd) Business Day following receipt by MSB of a written notice from LPI at the offices of LPI's lawyers in Santiago, Chile.
4.2.2 Upon the execution of the Option Agreement Assignment, LPI (and LITHIUM, as the case maybe) undertakes to:
(i) to concurrently exercise the option contained in the Option Agreement by means of a public deed in terms substantially similar to the draft attached hereto as Schedule 4.2.2 (ii) (the ''Option Exercise Deed"); and
(ii) to pay five million two hundred and twenty thousand Dollars (USD$5,220,000) (the "Option Exercise Price''); to the Owners of the Optioned Mining Concessions jointly with the exercise of the same, in terms and conditions set forth in the Option Agreement.