Document:

Exhibit 4.1

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

UNLESS AND UNTIL THIS GLOBAL NOTE IS EXCHANGED IN WHOLE OR IN PART FOR A GLOBAL NOTE IN DEFINITIVE REGISTERED FORM, THIS GLOBAL NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

 

  

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CVS CAREMARK CORPORATION

	
No. [     ]

	
[$               ]

	
CUSIP No. 126650BZ2

	  
	
ISIN No. US126650BZ20

	  

2.75% Senior Notes due December 1, 2022

CVS CAREMARK CORPORATION, a Delaware corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”), for value received promises to pay to CEDE & CO., or registered assigns, the principal sum of [$            ] on December 1, 2022.  If such maturity date is not a Business Day, then payment of principal will be made on the next succeeding Business Day.

 

Interest Payment Dates: June 1 and December 1.

 

Record Dates: Each May 15 and November 15, immediately preceding each Interest Payment Date.

 

Additional provisions of this Note are set forth on the reverse side of this Note.

 

 

 

 

[Remainder of page intentionally left blank]

 

  

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IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.

 

	
CVS CAREMARK CORPORATION

	
 

By:

	  
	  	
Name:

	
Carol A. DeNale

	  	
Title:

	
Senior Vice President and Treasurer

	  
	
 

By:

	  
	  	
Name:

	
David Denton

	  	
Title:

	
Executive Vice President and Chief Financial Officer

  

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Dated:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee, certifies that this is one of the Debt Securities referred to

in the Indenture.

 

 

	
By

	
 

	  
	  	
Authorized Signatory

	  

  

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2.75% Senior Notes due December 1, 2022

This Note is one of a duly authorized series of Notes of CVS Caremark Corporation, a Delaware corporation (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”), designated as its 2.75% Senior Notes due December 1, 2022 (hereinafter referred to as the “Notes”).

 

(a) Interest

 

The Company promises to pay interest on the principal amount of this Note at the rate per annum shown above.

 

The Company will pay interest on the Notes semi-annually on June 1 and December 1 of each year, commencing June 1, 2013.  Interest on the Notes will accrue from the most recent date to which interest has been paid, or, if no interest has been paid, from November 29, 2012.  Interest will be computed on the basis of a 360-day year of twelve 30-day months.  The Company shall pay interest on overdue principal at the rate borne by the Notes.  If any interest payment date is not a Business Day, then payment of interest will be made on the next succeeding Business Day and no interest will accrue on the amount so payable for the period from such interest payment date to the date payment is made.

 

(b) Method of Payment

 

The Company will pay interest on the Notes (except defaulted interest) to the Persons who are registered Holders thereof at the close of business on the May 15 and November 15 preceding the interest payment date even if the Notes are canceled after the record date and on or before the interest payment date.  Holders must surrender Notes to a Paying Agent to collect principal payments.  The Company will pay principal, premium, if any, and interest in money of the United States that at the time of payment is legal tender for payment of public and private debts by wire transfer of immediately available funds to the accounts specified by the Holders, or, if no such account is specified, the Company may pay principal and interest by check payable in such money.  It may mail an interest check to a Holder’s registered address.

 

(c) Paying Agent and Registrar

 

Initially, The Bank of New York Mellon Trust Company, N.A., a national banking association (the “Trustee”), will act as Paying Agent and Registrar.  The Company may appoint and change any Paying Agent, Registrar or co-registrar without notice.  The Company or any of its domestically incorporated Wholly Owned Subsidiaries may act as Paying Agent, Registrar or co-registrar.

 

  

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(d) Indenture

 

The Company issued the Notes under an Indenture dated as of August 15, 2006 (the “Indenture”), between the Company and the Trustee.  The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.  ss.ss.  77aaa-77bbbb) as in effect on the date of the Indenture (the “TIA”).  Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the Indenture.  The Notes are subject to all such terms, and Holders of Notes are referred to the Indenture and the TIA for a statement of those terms.

 

The Notes are general obligations of the Company initially limited to $1,250,000,000 aggregate principal amount (subject to Section 2.08 of the Indenture).  The Company may at any time issue additional Notes under the Indenture in unlimited amounts having the same terms as and treated as a single class with the Notes for all purposes under the Indenture and will vote together as one class with respect to the Notes.  The Indenture imposes certain limitations on the incurrence of certain additional indebtedness by the Company and certain of its subsidiaries and the entry into certain sale and leaseback arrangements by the Company and certain of its subsidiaries.  The Indenture also restricts the ability of the Company to consolidate or merge with or into, or to transfer all or substantially all its assets to, another person.

 

(e)    Optional Redemption

 

Prior to the date that is three months prior to the maturity date, the Company, at its option, may at any time redeem all or any portion of the Notes, at a redemption price, plus accrued and unpaid interest to the redemption date, equal to the greater of (i) 100% of their principal amount or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield plus 20 basis points.  After that date, the Company, at its option, may redeem all or any portion of the Notes at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest to the redemption date.  If any redemption date is not a Business Day, then payment of the redemption price and accrued and unpaid interest will be made on the next succeeding Business Day, and no interest will accrue on the amounts so payable for the period from such redemption date to the date payment is made.

 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Notes that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes.

 

  

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“Comparable Treasury Price” means, with respect to any redemption date, (i) the average of the applicable Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such applicable Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations.

 

“Independent Investment Banker” means Barclays Capital Inc. or, if such firm is unwilling or unable to select the applicable Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Trustee.

 

“Reference Treasury Dealer” means (i) Barclays Capital Inc. and its successors; provided, however, that if the foregoing shall cease to be a primary United States Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute therefor another Primary Treasury Dealer and (ii) any other Primary Treasury Dealer selected by the Company.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue for the Notes (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third business day preceding such redemption date.

 

“Treasury Yield” means, with respect to any redemption date, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for such redemption date.

 

(f)    Notice of Redemption

 

Notice of redemption shall be mailed at least 30 days but not more than 60 days before the redemption date to each Holder of Notes to be redeemed at its registered address.  Notes in denominations larger than $2,000 may be redeemed in part but only in whole multiples of $1,000.  If money sufficient to pay the redemption price of and accrued interest on all Notes (or portions thereof) to be redeemed on the redemption date is deposited with the Paying Agent on or before the redemption date and certain other conditions are satisfied, on and after such date interest ceases to accrue on such Notes (or such portions thereof) called for redemption.

 

(g)    Offers to Purchase

 

The Indenture provides, as established pursuant to Section 2.03 of the Indenture, that upon the occurrence of a Change of Control Triggering Event and 

 

  

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subject to further limitations contained therein, the Company shall make an offer to purchase outstanding notes in accordance with the procedures set forth in the Indenture.

 

(h)    Denominations; Transfer; Exchange

 

The Notes are in registered form without coupons in denominations of $2,000 and integral multiples of $1,000.  Holders of Notes may transfer or exchange Notes in accordance with the Indenture.  The Registrar may require a Holder of Notes, among other things, to furnish appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.  The Registrar need not register the transfer of or exchange any Notes selected for redemption (except, in the case of a Note to be redeemed in part, the portion of the Note not to be redeemed) or any Notes for a period of 15 days before a selection of Notes to be redeemed or 15 days before an interest payment date.

 

(i)    Persons Deemed Owners

 

The registered Holder of this Note may be treated as the sole owner of such Note for all purposes.

 

(j)    Unclaimed Money

 

Subject to applicable abandoned property law, if money for the payment of principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Company at its request unless an abandoned property law designates another Person.  After any such payment, Holders entitled to the money must look only to the Company and not to the Trustee or Paying Agent for payment.

 

(k)    Discharge and Defeasance

 

Subject to certain conditions, the Company at any time may terminate some or all of its obligations under the Notes and the Indenture if the Company deposits with the Trustee money or U.S. Government Obligations for the payment of principal and interest on the Notes to redemption or maturity, as the case may be.

 

(l)    Amendment; Waiver

 

Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Notes may be amended with the written consent of the Holders of at least a majority in principal amount outstanding of the Notes; and (ii) any default or compliance with any provision may be waived with the written consent of the Holders of a majority in principal amount of the Notes then outstanding.  Subject to certain exceptions set forth in the Indenture, without the consent of any Holder of a Note, the Company and the Trustee may amend the Indenture or the Notes to 

 

  

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cure any ambiguity, omission, defect or inconsistency, or to comply with Article 5 of the Indenture or that does not materially and adversely affect the rights of any Holder of a Note or to comply with requirements of the SEC in connection with the qualification of the Indenture under the TIA.

 

(m)    Defaults and Remedies

 

If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes may declare all the Notes to be due and payable immediately.  Certain events of bankruptcy or insolvency are Events of Default which will result in the Notes being due and payable immediately upon the occurrence of such Events of Default.

 

Holders of Notes may not enforce the Indenture or the Notes except as provided in the Indenture.  The Trustee may refuse to enforce the Indenture or the Notes unless it receives reasonable indemnity or security.  Subject to certain limitations, Holders of a majority in principal amount of the Notes may direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Holders of Notes notice of any continuing Default (except a Default in payment of principal or interest) if it determines that withholding such notice is in the interest of the Holders of Notes.

 

(n)    Trustee Dealings with the Company

 

Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee.

 

(o)    No Recourse Against Others

 

A director, officer, employee or stockholder, as such, of the Company or the Trustee shall not have any liability for any obligations of the Company under the Notes or the Indenture or for any claim based on, in respect of or by reason of such obligations.  By accepting a Note, each Holder of a Note waives and releases all such liability.  The waiver and release are part of the consideration for the issue of the Notes.

 

(p)    Authentication

 

This Note shall not be valid until an authorized signatory of the Trustee (or an authenticating agent) manually signs the certificate of authentication on the face of this Note.

 

(q)    Abbreviations

 

  

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Customary abbreviations may be used in the name of a Holder of a Note or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

 

(r)    Governing Law

 

This Note shall be governed by, and construed in accordance with, the laws of the State of New York but without giving effect to applicable principles of conflicts of law to the extent that the application of the laws of another jurisdiction would be required thereby.

 

(s)    CUSIP Numbers

 

Pursuant to the recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and has directed the Trustee to use such CUSIP numbers in notices of redemption as a convenience to Holders of Notes.  No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

 

-------------------------------------------

 

  

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The Company will furnish to any Holder of a Note upon written request and without charge to such Holder of a Note a copy of the Indenture.  Requests may be made to:

 

CVS Caremark Corporation

670 White Plains Road, Suite 210

Scarsdale, New York 10583

Attention: Nancy R. Christal

Terms defined in the Indenture and not otherwise defined herein are used herein as therein defined.

  

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ASSIGNMENT FORM

	  
	  	
To assign this Note, complete the form below:

 

I or we assign and transfer this Note to:

 

[Print or type assignee’s name, address and zip code]

 

[Insert assignee’s soc. sec. or tax I.D. No.]

	  
	 	 	 
	  	
and irrevocably appoint ______________ as agent to transfer this Note on the books of CVS.  The agent may substitute another to act for him.

	  
	 	 	 
	  
	
Date:_________________________

	
Your Signature:___________________

	  

Sign exactly as your name appears on the face of this Note.

12AMENDMENT NO

AMENDMENT NO. 1 TO

LEASE AND OPTION TO PURCHASE DATED MARCH 11 2010

THIS AMENDMENT NO. 1 to Lease and Option Agreement dated March 11, 2010, (“Lease Option”) is made effective this 28th day of November, 2012 by and between ATHENA MINERALS, INC, a Delaware corporation (“Lessee”) and its parent corporation, ATHENA SILVER CORPORATION, a Delaware corporation (“Athena Silver”), and BRUCE D. STRACHAN AND ELIZABETH K. STRACHAN, as Trustees under the Bruce and Elizabeth Strachan Revocable Living Trust dated July 25, 2007 (“Lessor”).

WITNESSETH:

WHEREAS,  Lessor and Lessee executed and delivered the Lease Option covering property and mining interests described therein (the “Langtry Project”) and desire to amend and modify the Lease Option as provided for hereinbelow. 

WHEREAS, all parties hereto agree that there exists no Event of Default under the Lease Option and Lessor is willing to amend the Lease Option in the particulars set forth herein. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained the parties agree as follows:  

1.

Unless otherwise defined herein, all capitalized terms shall have the meanings set forth in the Lease Option.  References to paragraph designations shall refer to designated provisions of the Lease Option as they currently exist. 

2.

Lessor acknowledges and agrees that all rents required to be paid by Lessee to Lessor under the Lease Option have been paid through March 15, 2012.  Lessor further acknowledges and agrees that it has received from Athena Silver all shares of Athena Silver common stock to which Lessor is entitled by virture of Paragraphs 3 and 5 of the Lease Option (hereafter collectively referred to as the “Anti-Dilution Shares”) through March 15, 2012.  

3.

On or before November 30, 2012,  Athena Silver will issue to Lessor an aggregate of (i) 1.0 million shares of common stock plus (ii) all additional “Anti-Dilution Shares” to which Lessor is entitled by virtue of Paragraphs 3 and 5 of the Lease Option up to the date of this Agreement. Further, on or before February 15, 2013, Athena Silver will issue to Lessor an additional 1.0 million shares of Athena Silver common stock.  The issuances of Athena Silver common stock provided for in this Paragraph 3 shall collectively be referred to as the “Equity Consideration”.  For purposes of federal income tax, the parties agree that in view of the fact that the Equity Consideration is restricted securities under federal securities laws and the fact that the public trading market for the shares of Athena Silver common stock is volatile and highly illiquid, the fact that Athena Silver has generated no revenues, is in the development stage and has a negative net worth, that the fair market value of the shares included in the Equity Consideration as of the date of this Agreement is $0.15 per share.  The parties acknowledge and agree that this valuation shall not be binding for accounting purposes. The President of Athena Silver Corp. and/or the Corporate Counsel for Athena Silver Corp. shall provide Corporate Stock Transfer, Inc., Athena Silver’s Stock Transfer Agent, a Cost Basis Report 

_____________  _____________

Lessee’s Initials  Lessor’s Initials

under the Emergency Ecomonic Stabilization Act of 2008 in connection with the November 30, 2012 share issuance and, provided there has not occurred a material change in the public trading market for the common stock or financial condition or business prospects of Athena Silver, the February 15, 2013 share issuance provided for in this paragraph stating the cost of the shares so issued is $0.15 per share. The Lessor shall be provided a legible copy of the Cost Basis Reports concurrently with them being delivered to the Stock Transfer Agent; i.e., on or before November 30, 2012 with respect to the first tranche due November 30, 2012; and on or before February 15, 2013 with respect to the second tranche due on or before February 15, 2013.  In consideration of the covenants and agreements contained in the Lease Option and this Amendment No. 1 thereto, including, without limitation, the agreement to issue the Equity Consideration to Lessor,  Lessor agrees for itself, its administrators, successors and assigns, hereby agrees that for the period of time commencing on the date hereof and ending one year from the date hereof (the “Lock-Up Period”) not to:

(i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of any shares of the Company's Common Stock or other capital stock (collectively, "capital stock") or any securities convertible into or exercisable or exchangeable for Common Stock or other capital stock, whether now owned or hereafter acquired by the Lessor or with respect to which the Lessor has or hereafter acquires the power of disposition, or

(ii) enter into any swap or other agreement, arrangement, hedge or transaction that transfers to another, in whole or in part, directly or indirectly, any of the economic consequence of ownership of any Common Stock or other capital stock or any securities convertible into or exercisable or exchangeable for any Common Stock or other capital stock,

whether any transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock, other capital stock, other securities, in cash or otherwise, or publicly announce any intention to do any of the foregoing.

4.

Lessee agrees to pay Lessor the following amounts on or before the stated dates:

Amount

Date

$125,000

November 30, 2012

$125,000

February 15, 2013

$250,000

January 15, 2014

$500,000

January 15, 2015

$1.0 million

January 15, 2016

The payments provided for in this Paragraph 4 shall collectively be preferred to as the “Cash Consideration”.  

5.

Should the payment of any installment of the Equity or Cash Consideration be delinquent by more than ten days after written notice from Lessor, Lessee shall be obligated to pay a penalty of 10% of the delinquent amount. Should any installment payment of Equity or Cash Consideration be delinquent by more than 30 days after written notice from Lessor, then the provisions of this Amendment may be deemed terminated, null and void, at the option of Lessor; 

_____________  _____________

Lessee’s Initials  Lessor’s Initials

whereupon the original provisions of the Lease Option that were modified by the provisions of this Amendment shall be reinstated, ab initio.

6.

Upon the payment in full by Athena Silver to Lessor of the full Equity Consideration and the full Cash Consideration installments due November 30, 2012 and February 15, 2013, Lessor’s entitlement to the Anti-Dilution Shares under Paragraphs 3 and 5 of the Lease Option shall be terminated, null and void. 

7.

Upon the payment in full by Lessee to Lessor of the Cash Consideration and payment in full of the Equity Consideration provided for in Paragraphs 3 and 4 of this Amendment No. 1, Lessor’s entitlement pursuant to Paragraph 4 of the Lease Option to the Gross Royalty on Production shall be terminated, null and void.  Notwithstanding the foregoing, in the event Lessee fails to pay Lessor the full Equity Consideration and/or Cash Consideration, Lessor’s 3.0% Gross Royalty on Production provided for in Paragraph 4 of the Lease Option shall continue but shall be reduced by a percentage, the numerator of which is the total Cash and Equity Consideration actually paid by Lessee to Lessor (with the total Equity Consideration valued at $300,000, or $0.15 per share of common stock), and the denominator of which is $2.3 million.  For the purposes of the Lease Option and this Amendment, Gross Royalty on Silver Production shall be defined as the specified percentage of net smelter returns with no deduction for transport of concentrates or dore bars and no deduction for milling or other processing of the ore prior to transport to the smelter.  Net Smelter Returns is defined as the actual cash payment received by the Lessee from the smelter.  Gross Royalty on all other products produced from the 20 patented claims included in the Langtry Project shall be defined as the specified percentage of the actual sales price without deduction for transportation of the products to the buyer and without deduction for milling and other processing by Lessee prior to shipment of the product.

8.

Lessee’s obligation to pay rent to Lessor under Paragraphs 7, 8 and 9 of the Lease Option shall continue in full force and effect and shall be unmodified by this Amendment.

9.

The annual rent payments due to Lessor on March 15, 2016, March 15, 2017, March 15, 2018, March 15, 2019 and March 15, 2020 shall be capped at $100,000 for each payment until “Commercial Silver Production” has commenced at any time prior to March 15, 2020. For the purposes of this Amendment, “Commercial Silver Production” shall mean when Lessee has achieved a cumulative production of at least 100,000 troy ounces of silver from the Langry Project. Notwithstanding the foregoing, the $100,000 annual cap on rent payments shall apply and the Lessee shall not be obligated to make payments in accordance with the payment schedule specified in Paragraph 10 of the Lease Option for any years through March 15, 2020 unless “Commercial Silver Production” has been achieved prior to March 15, 2020. 

 

10.

Paragraphs 11 and 12 of the Lease Option shall remain in full force and effect; provided, however, that Lessee shall have the right to eliminate the silver price link to rent on March 15th of any year through March 15, 2026 as contained in the phrase “or the current price of 15,000 troy ounces of silver (whichever is higher)” in Paragraph 11 and the phrase “or the current price of 20,000 troy ounces of silver (whichever is highter)” in Paragraph 12 (a) by making a one time payment to Lessor in amount equal to 25,000 troy ounces of silver (the “Silver Price Link Payment”) based upon the average of the London Silver Fix on the calendar month immediately preceding the Silver Price Link Payment, at any time during the eleven year period beginning March 15, 2015 and 

_____________  _____________

Lessee’s Initials  Lessor’s Initials

ending March 15, 2026.  Notwithstanding the foregoing, the elimination of the silver price link to rent shall terminate upon Lessee achieving Commercial Silver Production on the Langtry Project.  

11.

Lessor hereby grants to Lessee an option to extend the term of the Lease Option for an additional five (5) years, or until March 15, 2035, upon the same terms and conditions as provided in Paragraph 12 of the Lease Option. and thereafter, the Lease Option shall continue in full force and effect on the same terms and conditions set forth in Paragraph 12 of the Lease Option for so long as there is Commercial Silver Production on the Langtry Project.

12.

Paragraph 15 of the Lease Option shall remain in full force and effect, subject to the following modification:  provided that Lessee has paid to Lessor the portions of the Cash and Equity Considerations due on or before November 30, 2012 and February 15, 2013 and all payments due to the Lessor under the terms of the Lease Option,  for the period beginning January 15, 2013 and ending March 15, 2015,  Lessee shall have the right upon 30 days’ written notice to Lessor to purchase fee simple title to the 20 patented mining claims comprising the Langtry Project in consideration of a one time cash payment in the amount of $10 million plus all transaction costs as specified in Paragraph 18 of the Lease Option.

13.

Athena Silver will honor all properly documented requests from Lessor that the restrictive legend be removed from certificates representing shares of Athena Silver common stock issued to Lessor pursuant to the Lease Option and this Amendment under applicable provisions of Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”). Athena Silver will exercise commercially reasonable efforts to instruct its transfer agent, Corporate Stock Transfer, Inc., to cancel and reissue certificates without restrictive legend representing all shares of Athena Silver common stock owned by Lessor which are qualified for resale without restriction under Rule 144.  Athena Silver shall not be responsible for any delay or failure on the part of the transfer agent to remove any restrictive legend for any reason beyond the control of Athena Silver.

14.

This Amendment may not be construed to amend the Lease Agreement in any way except as expressly set forth herein.  

15.

The parties hereby confirm that the Lease Option, as amended by this Amendment No. 1, is in full force and effect.  In the event of any conflict or inconsistency between the provisions of this Amendment and the provisions of the Lease Option, the provisions of this Amendment shall control.

16. 

In the event that one or more of the following items are 30 days past due this Amendment No. 1 shall be deemed to be breached and the Lessor shall have the option to cancel and terminate this Amendment No. 1.

A.

Each and every cash payment specified in this Amendment No. 1.

B.

Delivery to the Lessor of stock certificates in the name of the Strachan Trust for all shares of Athena Silver Corporation specified in this Amendment No. 1.

C.

Each and every cash payment specified in the Lease Option except those payments modified by this Amendment No. 1.

17. 

The following items shall be delivered to the Lessor prior to November 30, 2012:

_____________  _____________

Lessee’s Initials  Lessor’s Initials

A.

Delivery to the Lessor of a legible copy of the Corporate Resolution which authorizes this Amendment No. 1.

B.

Delivery to the Lessor of a legible, signed copy of this Amendment No. 1 signed by an officer of Athena Minerals Inc. who is authorized to sign this Amendment No. 1. 

18. 

The following items shall be delivered to the Lessor:

A.

Delivery to the Lessor of a legible, signed copy of the Cost Basis Reports to the Stock Transfer Agent described in Paragraph #3 of this Amendment No. 1 on or before the respective due dates of issue, to wit:  November 30, 2012 and February 15, 2013.

B.

Delivery to the Lessor of a legible, signed copy of the written instructions to the Stock Transfer Agent described in Paragraph #13 of this Amendment No. 1 within five (5) business days of receipt of Lessor’s properly documented request for legend removal.

IN WITNESS WHEREOF, the parties have signed this Amendment the date and year first above written.

ATHENA SILVER CORPORATION

ATHENA MINERALS, INC.

By:

/s/ John C. Power

By: 

/s/ John C. Power

 

Name:

JOHN C. POWER

Name:  JOHN C. POWER

Title:    PRESIDENT

Title:  PRESIDENT

BRUCE AND ELIZABETH STRACHAN REVOVABLE LIVING TRUST DATED JULY 25, 2007

    

By:  

/s/ Bruce D. Strachan

By: 

/s/ Elizabeth K. Strachan

Bruce D. Strachan, Trustee

Elizabeth K. Strachan, Trustee

_____________  _____________

Lessee’s Initials  Lessor’s Initials

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