Covenants of Optionee. 11.1 At the signing of this Agreement or as soon as possible thereafter, provide the Optionors a Quitclaim Deed which is to be held in trust by the lawyers for the Optionors and released as follows and then which may be registered against the title to the Property: (a) to the Optionors in the event that the Option expires without exercise or is terminated by either party to this Agreement; (b) to the Optionee upon the exercise of the Option. 11.2 Following the signing of this Agreement, the Optionee will: (a) in addition to the obligations to keep the Property in good standing as set forth elsewhere in this Agreement, keep the Property in good standing for a period of one year following the date of the termination, expiration or exercise of the Option; (b) keep the Property free and clear of all liens, charges and encumbrances arising from its operations hereunder during the term of the Option and then for a period of six years following the date of the termination, expiration or exercise of the Option; (c) in the event that the laws in the State of Nevada or the federal laws of the United States of America allow or require the filing of assessment reports, then from time to time, file all exploration work as assessment work against the Property to the maximum allowable extent; (d) subject to Section 11.1(c), the Optionee will file, as assessment work against each of the mining claims then forming the Property, all exploration expenses to the maximum amount allowable and will use its best efforts to ensure that the applicable government authority accepts all of those expenditures as assessment and the Optionee will ensure that the assessment work is credited to each of the mining claims then forming the Property; (e) permit the Optionors, or their representatives duly authorized by it in writing, at its own risk and expense, access to the Property at all reasonable times; (f) permit the Optionors, or their representatives duly authorized by it in writing, access to all records pertaining to the Property, including those prepared by the Optionee and those prepared by other people both before and after the date of this Agreement, in respect to the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised) or work done on or with respect to the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised), including, but not restricted to, all drill core, assay pulps, maps, drilling logs, assay results and other technical data acquired by the Optionee or compiled by or on behalf of the Optionee with respect to the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised), including any interpretive data or conclusions and copies of all books, accounts and records of operations conducted by or on behalf of the Optionee on the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised) or by others on the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised); (g) without demand from the Optionors, deliver to the Optionors, as soon as possible after receipt by the Optionee thereof, all documents referred to in Section 11.1(f); (h) conduct all work on or with respect to the Property in a careful and minerlike manner and in compliance with all applicable Federal, Provincial and local laws, rules, orders and regulations; (i) not breach any Environmental Laws; (j) not do anything to incur Environmental Liabilities; (k) indemnify and hold the Optionors harmless from and against any and all expenses, losses, claims, actions, damages or liabilities, whether joint or several (including the aggregate amount paid in reasonable settlement of any actions, suits, proceedings or claims), and the reasonable fees and expenses of its counsel that result from a breach of any term of this Agreement or may be incurred in advising with respect to and/or defending any claim that may be made against the Optionors, to which the Optionors may become subject or otherwise involved in any capacity under any statute or common law or otherwise insofar as such expenses, losses, claims, damages, liabilities or actions arise out of or are based, directly or indirectly, (i) any taxes, fees or other amounts owing to any governmental agency in respect of the Property and (ii) any work conducted on the Property by the Optionee or its employees, contractors or agents and including, but not restricted to, any breach or alleged breach of any Environmental Laws; (l) deliver to the Optionors Technical Reports as follows: (i) by April 30, 2013 for the period ended February 15, 2013; (j) by April 30 of each successive year during the term of the Option for the period ended the previous December 31; and
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Covenants of Optionee. 11.1 At the signing of this Agreement or as soon as possible thereafter, provide the Optionors a Quitclaim Deed which is to be held in trust by the lawyers for the Optionors and released as follows and then which may be registered against the title to the Property:
(a) to the Optionors in the event that the Option expires without exercise or is terminated by either party to this Agreement;
(b) to the Optionee upon the exercise of the Option.
11.2 Following the signing of this Agreement, the Optionee will:
(a) in addition to the obligations to keep the Property in good standing as set forth elsewhere in this Agreement, keep the Property in good standing for a period of one year following the date of the termination, expiration or exercise of the Option;
(b) keep the Property free and clear of all liens, charges and encumbrances arising from its operations hereunder during the term of the Option and then for a period of six years following the date of the termination, expiration or exercise of the Option;
(c) in the event that the laws in the State of Nevada or the federal laws of the United States of America allow or require the filing of assessment reports, then from time to time, file all exploration work as assessment work against the Property to the maximum allowable extent;
(d) subject to Section 11.1(c), the Optionee will file, as assessment work against each of the mining claims then forming the Property, all exploration expenses to the maximum amount allowable and will use its best efforts to ensure that the applicable government authority accepts all of those expenditures as assessment and the Optionee will ensure that the assessment work is credited to each of the mining claims then forming the Property;
(e) permit the Optionors, or their representatives duly authorized by it in writing, at its own risk and expense, access to the Property at all reasonable times;
(f) permit the Optionors, or their representatives duly authorized by it in writing, access to all records pertaining to the Property, including those prepared by the Optionee and those prepared by other people both before and after the date of this Agreement, in respect to the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised) or work done on or with respect to the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised), including, but not restricted to, all drill core, assay pulps, maps, drilling logs, assay results and other technical data acquired by the Optionee or compiled by or on behalf of the Optionee with respect to the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised), including any interpretive data or conclusions and copies of all books, accounts and records of operations conducted by or on behalf of the Optionee on the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised) or by others on the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised);
(g) without demand from the Optionors, deliver to the Optionors, as soon as possible after receipt by the Optionee thereof, all documents referred to in Section 11.1(f);
(h) conduct all work on or with respect to the Property in a careful and minerlike manner and in compliance with all applicable Federal, Provincial and local laws, rules, orders and regulations;
(i) not breach any Environmental Laws;
(j) not do anything to incur Environmental Liabilities;
(k) indemnify and hold the Optionors harmless from and against any and all expenses, losses, claims, actions, damages or liabilities, whether joint or several (including the aggregate amount paid in reasonable settlement of any actions, suits, proceedings or claims), and the reasonable fees and expenses of its counsel that result from a breach of any term of this Agreement or may be incurred in advising with respect to and/or defending any claim that may be made against the Optionors, to which the Optionors may become subject or otherwise involved in any capacity under any statute or common law or otherwise insofar as such expenses, losses, claims, damages, liabilities or actions arise out of or are based, directly or indirectly, (i) any taxes, fees or other amounts owing to any governmental agency in respect of the Property and (ii) any work conducted on the Property by the Optionee or its employees, contractors or agents and including, but not restricted to, any breach or alleged breach of any Environmental Laws;
(l) deliver to the Optionors Technical Reports as follows:
(i) by April 30September 15, 2013 for the period ended February 15July 1, 2013;
(j) by April 30 of each successive year during the term of the Option for the period ended the previous December 31; and
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Covenants of Optionee. 11.1 At the signing of this Agreement or as soon as possible thereafter, provide the Optionors a Quitclaim Deed which is to be held in trust by the lawyers for the Optionors and released as follows and then which may be registered against the title to the Property:
(a) to the Optionors in the event that the Option expires without exercise or is terminated by either party to this Agreement;
(b) to the Optionee upon the exercise of the Option.
11.2 Following the signing of this Agreement, the Optionee will:
(a) in addition to the obligations to keep the Property in good standing as set forth elsewhere in this Agreement, keep the Property in good standing as follows:
(i) for a period of one year following the date of the termination, expiration or exercise of the First Option; and
(ii) in the event that the First Option is exercised and the Optionee delivers the Election to Proceed to Second Option Notice, then for a period of one year following the date of the termination or expiration of the Second Option;
(b) keep the Property free and clear of all liens, charges and encumbrances arising from its operations hereunder during the term of the Option and then hereunder
(i) for a period of six years following the date of the termination, expiration or exercise of the First Option; and
(ii) in the event that the First Option is exercised and the Optionee delivers the Election to Proceed to Second Option Notice, then for a period of six years following the date of the termination or expiration of the Second Option;
(c) use its best efforts to ensure that the Department of Natural Resources accepts all of those expenditures set out in the event Initial Optionee’s Assessment Report Filing as assessment and the Optionee will ensure that the laws in the State of Nevada or the federal laws assessment work is credited to each of the United States Licences to ensure that the amount filed against each of America allow or require the filing Licences is greater than the required amount of assessment reports, then for the two terms expiring the date of the issuance of each of the Licences;
(d) from time to time, file all exploration work as assessment work against the Property to the maximum allowable extent;
(de) subject to without restricting Section 11.1(c11.1(d), the Optionee will file, as assessment work against each of the mining claims licences then forming the Property, all exploration expenses to the maximum amount allowable and will use its best efforts to ensure that the applicable government authority Department of Natural Resources accepts all of those expenditures as assessment and the Optionee will ensure that the assessment work is credited to each of the mining claims licences then forming the Property;
(ef) permit the OptionorsOptionor, or their its representatives duly authorized by it in writing, at its own risk and expense, access to the Property at all reasonable times;
(fg) permit the OptionorsOptionor, or their its representatives duly authorized by it in writing, access to all records pertaining to the Property, including those prepared by the Optionee and those prepared by other people both before and after the date of this Agreement, in respect to the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised) or work done on or with respect to the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised), including, but not restricted to, all drill core, assay pulps, maps, drilling logs, assay results and other technical data acquired by the Optionee or compiled by or on behalf of the Optionee with respect to the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised), including any interpretive data or conclusions and copies of all books, accounts and records of operations conducted by or on behalf of the Optionee on the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised) or by others on the Property (or any Additional Property regardless of whether the Area of Interest Option was exercised);
(gh) without demand from the OptionorsOptionor, deliver to the OptionorsOptionor, as soon as possible after receipt by the Optionee thereof, all documents referred to in Section 11.1(f11.1(g);
(hi) conduct all work on or with respect to the Property in a careful and minerlike manner and in compliance with all applicable Federal, Provincial and local laws, rules, orders and regulations;
(ij) not breach any Environmental Laws;
(jk) not do anything to incur Environmental Liabilities;
(kl) indemnify and hold the Optionors Optionor harmless from and against any and all expenses, losses, claims, actions, damages or liabilities, whether joint or several (including the aggregate amount paid in reasonable settlement of any actions, suits, proceedings or claims), and the reasonable fees and expenses of its counsel that result from a breach of any term of this Agreement or may be incurred in advising with respect to and/or defending any claim that may be made against the OptionorsOptionor, to which the Optionors Optionor may become subject or otherwise involved in any capacity under any statute or common law or otherwise insofar as such expenses, losses, claims, damages, liabilities or actions arise out of or are based, directly or indirectly, (i) any taxes, fees or other amounts owing to any governmental agency in respect of the Property and (ii) any work conducted on the Property by the Optionee or its employees, contractors or agents and including, but not restricted to, any breach or alleged breach of any Environmental Laws;
; (lm) in the event that the First Option or the Second Option is terminated or expires without being exercised, then within 15 days of such termination or expiry, the Optionee, at is sole cost, will have prepared and will deliver to the Optionors Optionor a Technical Reports as follows:
(i) by April 30, 2013 for Report addressed to the period ended February 15, 2013Optionor with an effective date of not earlier than the date of such termination or expiration;
(j) by April 30 of each successive year during the term of the Option for the period ended the previous December 31; and
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Sources: Option Agreement (Balaton Power Inc)