Option To Purchase Business Agreement Template for Canada

1. Financing Conditions: Used when the option holder requires financing to complete the purchase

2. Regulatory Approval: Required for businesses in regulated industries or large transactions needing competition approval

3. Employee Matters: Included when specific arrangements for employees are needed post-purchase

4. Intellectual Property: Required when IP is a significant component of the business value

5. Real Estate: Included when business premises are owned rather than leased

6. Non-Competition: Used when restrictions on the seller's future business activities are required

7. Earn-out Provisions: Included when part of the purchase price is contingent on future performance

8. International Considerations: Required when the business has international operations or parties

1. Schedule A - Business Description: Detailed description of the business, including assets, operations, and locations

2. Schedule B - Purchase Price Calculation: Formula or methodology for determining the final purchase price

3. Schedule C - Due Diligence Requirements: List of documents and information to be provided during due diligence

4. Schedule D - Required Consents: List of third-party consents needed for the transaction

5. Schedule E - Material Contracts: List of important business contracts affecting the purchase

6. Schedule F - Excluded Assets: List of assets not included in the potential purchase

7. Appendix 1 - Form of Option Exercise Notice: Template for the formal notice to exercise the option

8. Appendix 2 - Form of Purchase Agreement: Draft of the purchase agreement to be executed upon option exercise