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1. Parties: Identifies and defines the parties to the agreement - typically the Option Grantor and Option Holder
2. Background: Sets out the context and purpose of the option agreement, including brief description of the subject matter
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles
4. Grant of Option: Explicitly states the grant of the option and its basic terms
5. Option Period: Specifies the duration of the option, including start and end dates
6. Option Fee: Details the amount payable for the option and payment terms
7. Exercise of Option: Specifies the process and requirements for exercising the option
8. Exercise Price: States the price payable upon exercise of the option
9. Completion: Sets out the process and obligations for completion after option exercise
10. Warranties and Representations: Contains warranties given by both parties regarding their capacity and authority
11. Confidentiality: Obligations regarding confidential information
12. Notices: Specifies how formal notices must be given under the agreement
13. General Provisions: Standard boilerplate clauses including governing law, entire agreement, etc.
14. Execution: Formal execution blocks for signing by the parties
1. Due Diligence: Include when the option holder has rights to conduct due diligence during the option period
2. Security: Include when there is any form of security required for the option
3. Assignment: Include when transfer of option rights needs to be specifically addressed
4. Multiple Options: Include when there are multiple tranches or types of options
5. Pre-emptive Rights: Include when there are other stakeholders with pre-emptive rights
6. Maintenance and Operation: Include for options over business assets or property requiring maintenance during the option period
7. GST: Include detailed GST provisions when the option or underlying transaction is subject to GST
8. Foreign Investment: Include when foreign investment approval may be required
9. Competition Law Compliance: Include when the exercise of the option may have competition law implications
1. Option Terms Schedule: Detailed description of the option terms including precise pricing mechanisms
2. Property/Asset Description: Detailed description of the property or assets subject to the option
3. Exercise Notice Form: Prescribed form for exercising the option
4. Due Diligence Requirements: List of due diligence materials and processes if applicable
5. Form of Primary Agreement: Draft of the agreement to be entered into upon exercise (e.g., sale agreement)
6. Corporate Information: Corporate details of the parties if the option relates to company shares
7. Encumbrances Schedule: List of any existing encumbrances on the option subject matter
Business Day
Commencement Date
Completion
Completion Date
Conditions Precedent
Confidential Information
Consideration
Default Event
Due Diligence Materials
Due Diligence Period
Effective Date
Encumbrance
Exercise Date
Exercise Notice
Exercise Period
Exercise Price
Expiry Date
Force Majeure Event
Governmental Agency
GST
Initial Payment
Insolvency Event
Law
Loss
Material Adverse Change
Notice
Option
Option Fee
Option Period
Permitted Encumbrance
Related Body Corporate
Related Party
Representative
Security Interest
Subject Matter
Sunset Date
Transaction Documents
Warranties
Grant of Option
Option Fee
Option Period
Exercise of Option
Exercise Price
Completion Obligations
Due Diligence
Warranties and Representations
Conditions Precedent
Security
Default
Termination
Force Majeure
Confidentiality
Intellectual Property
Assignment
GST
Costs and Stamp Duty
Notices
Governing Law
Dispute Resolution
Force Majeure
Anti-Money Laundering
Foreign Investment
Competition Law
Data Protection
Entire Agreement
Severability
Amendment
Waiver
Further Assurance
Counterparts
Time of Essence
Relationship of Parties
Real Estate
Mining and Resources
Financial Services
Technology
Agriculture
Retail
Manufacturing
Private Equity
Venture Capital
Infrastructure
Energy
Healthcare
Legal
Corporate Finance
Commercial
Business Development
Real Estate
Mergers and Acquisitions
Investment
Operations
Risk and Compliance
Property
Strategy
Chief Executive Officer
Chief Financial Officer
Commercial Director
Business Development Manager
Property Developer
Investment Manager
Legal Counsel
Corporate Lawyer
Real Estate Manager
Project Manager
Acquisitions Manager
Asset Manager
Company Director
Commercial Manager
Risk Manager
Compliance Officer
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