The Initial Option Sample Clauses

The Initial Option. (i) Shall have an exercise price equal to Fifty-Eight Cents ($0.58) per share; and (ii) Shall become fully vested and exercisable as to 33 1/3% of the number of shares of Common Stock immediately upon the execution of this Agreement, and again upon each of the first two Anniversary Dates, if Executive remains employed by the Company as of such date, provided that the Initial Option shall immediately become fully vested and exercisable upon a Termination of Employment by reason of the death or Disability of Executive, a Termination Without Cause, a Termination for Good Reason, or a Change of Control.

The Initial Option. 4.1 The Company hereby grants to Avaron the exclusive right and option to acquire a 75% Interest in the Property, free and clear of all Encumbrances in accordance with the terms of this Agreement (the “Option”). In connection with the grant of the Option, Avaron shall have the right to enter onto and occupy the Property in order to conduct such activity as is contemplated in this Agreement. Avaron shall comply with the relevant terms of the Company’s mining leases relating to the Property and shall indemnify and hold harmless the Company for any claims, losses or damages suffered or incurred by the Company as a result of Avaron’s failure to so comply. 4.2 In order for Avaron to acquire a 75% Interest it must: (a) make a total of $375,000 in cash payments to the Company as annual advance royalties by the fifth anniversary of the Execution Date as set forth in section 4.3; (b) issue to the Company a total of 800,000 common shares of Avaron by the fifth anniversary of the Execution Date as set forth in section 4.3. (c) incur Exploration Costs totaling $100,000 by the first anniversary of the Execution Date, which will be a firm commitment by Avaron, and therefore to the extent these Exploration Costs are not incurred within this time period, Avaron will forthwith pay the balance not incurred directly to the Company; further, the Parties intend that the provisions of this subsection 4.2(c) will survive the termination of this Agreement; and (d) at its sole expense, complete drilling on a total of 35,000 metres in depth, or incur Exploration Costs of up to $7,100,000 in lieu of such drilling (which for greater certainty, includes the $100,000 firm commitment set out in subsection 4.2(c) above), by the fifth anniversary of the Execution Date as set forth in section 4.3. These obligations must be met in accordance with the schedule set out in this Article 4 in order to keep the Option in good standing. 4.3 In order to keep the Option in good standing and earn a 75% Interest, Avaron shall make payments to the Company by wire transfer or certified cheque in immediately available funds, issue to the Company common shares of Avaron, and incur Exploration Costs, as follows: (a) pay $25,000 to the Company, and issue to the Company 150,000 common shares of Avaron within five days of the Execution Date; (b) issue to the Company another 150,000 common shares of Avaron and incur $100,000 in Exploration Costs as a firm commitment pursuant to subsection 4.2(c) above, on or b...

The Initial Option. The Initial Option shall be vested as to ------------------ 25,000 shares on the Effective Date. As to the remaining 125,000 shares and provided the Employee continues to be engaged under this Agreement on each of the vesting dates, the remainder of the Initial Option shall vest in the following manner: 25,000 shares on the one year anniversary of the Effective Date (June 28, 2001), and thereafter 1/24 of the remaining shares subject to the Initial Option each month the Employee continues to be engaged under this Agreement. The Initial Option shall be fully vested on the third anniversary of the Effective Date.