The Company grants to the Lender, for a period beginning on the date of the Daybreak Loan Payoff through December 31, 2015, an irrevocable, transferable option to purchase, in exchange for the forgiveness by the Lender of the lesser of (a) the outstanding Obligations owing pursuant to the Loan Agreement and (b) $6,000,000 in Obligations owing pursuant to the Loan Agreement, a twenty-five percent (25%) working interest in the oil and gas leases (the “Leases”) described on Exhibit C hereto (which interests the Company acknowledges and agrees shall be freely assignable by the Lender); provided, however, that if at the time of exercise of this option the outstanding Obligations owing pursuant to the Loan Agreement are less than $6,00,000, then the Lender agrees that it will pay to the Company $75,000 for each well drilled and completed pursuant to the Operating Agreement following the date of the exercise of the option until such amounts plus the amount of outstanding Obligations forgiven under the Loan Agreement collectively total $6,000,000.   Notwithstanding the foregoing, to the extent any portion of a Lease is part of a drilling unit for wells that have been drilled prior to August 28, 2013 (“Previously Drilled Wells”), as identified on Exhibit C , with respect to the portion of such Lease consisting of a five hundred foot radius around the wellbore of a Previously Drilled Well (such portion, the “Partially Excluded Portion”), the Company shall assign, sell, and convey to the Lender a twenty-five percent (25%) working interest in a Partially Excluded Portion only to the extent that the Company has since August 28, 2013 drilled, or in the future drills, within such Partially Excluded Portion.