posted on
Oct 08, 2009 04:27PM

Falcon is a global energy company with projects in Hungary, Australia & South Africa
Developing large acreage positions of unconventional and conventional oil and gas resources

Message: Re: Agreement
Let's hope it will not come to that.
However, there's a provision for this eventuality in the agreement.
Option to Withdraw. Under this Agreement, at any time from the Initial Work Program Completion Date to 120 days thereafter, ExxonMobil shall have the option, to be exercised in ExxonMobil’s sole discretion, to relinquish its Participating Interest and all related rights and obligations and withdraw from this Agreement. In this event, all ExxonMobil’s obligations under this Agreement will terminate automatically, except for rights and obligations not yet fulfilled as of the effective date of such withdrawal, and ExxonMobil shall reassign to Falcon its rights and obligations without further consideration from either Party; provided, however, if ExxonMobil has elected to withdraw and has assigned an interest to MOL pursuant to Section 16, below, MOL (as a Party to this Agreement) shall have the option to:
(a) withdraw, in which event all of the portion of the Initial Participating Interestwhich was assigned to MOL shall be reassigned to Falcon and relinquished; or
(b) elect to accept all rights and obligations related to the portion of the InitialParticipating Interest which was not assigned to MOL pursuant to Section 16,below and which ExxonMobil it owns at the time of ExxonMobil’s withdrawal(“ExxonMobil Participating Interest”).
MOL’s election to withdraw or election to accept shall be made by written notice to Falcon within thirty (30) days after Falcon receives ExxonMobil’s notice of withdrawal. In the event MOL elects to accept and assume the ExxonMobil Participating Interest, upon written notice to MOL and ExxonMobil within thirty (30) days after Falcon receives MOL’s election to accept, Falcon shall have the right to preempt this election by assuming all rights and obligations of the ExxonMobil Participating Interest. In such event, MOL shall continue with all rights and obligations pertaining to its Participating Interest by paying its proportionate share of the obligations of MOL’s Participating Interest under this Agreement.
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