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Repurchase Option Agreement Template for Canada

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Key Requirements PROMPT example:

Repurchase Option Agreement

"I need a Repurchase Option Agreement for a commercial property in Vancouver, where our company will have the right to buy back the property within 3 years at a predetermined price of $5.2M, with the option period starting March 1, 2025."

Document background
The Repurchase Option Agreement is commonly used in Canadian business transactions where a party wishes to retain the possibility of reacquiring assets that they are selling or have previously sold. This type of agreement is particularly valuable in strategic business arrangements, real estate transactions, and corporate restructuring scenarios. The document requires careful consideration of Canadian federal and provincial laws, including securities regulations, property laws, and tax implications. It typically includes detailed provisions regarding the option exercise price, timing, conditions, and procedure for executing the repurchase. The agreement is essential for protecting the interests of both the option holder and the current owner, providing clarity on rights and obligations, and ensuring a smooth transaction process if the option is exercised.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names and addresses

2. Background: Context of the agreement, including the original sale or transfer of the asset and the reason for granting the repurchase option

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of Option: Clear statement of the repurchase option being granted, including the specific assets covered

5. Option Period: Duration of the option, including start and end dates

6. Exercise Price: Specification of the repurchase price or pricing mechanism

7. Exercise Procedure: Detailed process for exercising the option, including notice requirements and timing

8. Payment Terms: Terms and conditions for payment upon exercise of the option

9. Representations and Warranties: Standard representations and warranties from both parties

10. Conditions to Exercise: Any conditions that must be met before the option can be exercised

11. Transfer of Title: Process and requirements for transferring title upon exercise

12. Termination: Circumstances under which the agreement may be terminated

13. Governing Law: Specification of applicable law and jurisdiction

14. General Provisions: Standard boilerplate provisions including notices, amendments, and assignment

Optional Sections

1. Asset Maintenance: Requirements for maintaining the asset during the option period - include when the asset requires specific care or maintenance

2. Right of First Refusal: Additional rights to match third-party offers - include when parties want additional protection against third-party sales

3. Security Arrangements: Details of any security or collateral arrangements - include when additional security is required

4. Tax Matters: Specific tax treatment and allocations - include when there are significant tax implications

5. Third Party Consents: Requirements for obtaining third party approvals - include when third party rights are affected

6. Regulatory Compliance: Specific regulatory requirements - include when the transaction is subject to regulatory oversight

7. Confidentiality: Confidentiality obligations - include when sensitive information is involved

8. Force Majeure: Provisions for unforeseen circumstances - include when long option periods are involved

Suggested Schedules

1. Schedule A - Asset Description: Detailed description of the asset(s) subject to the repurchase option

2. Schedule B - Option Exercise Notice: Form of notice to be used when exercising the option

3. Schedule C - Pricing Mechanism: Detailed calculation method if the exercise price is not fixed

4. Schedule D - Required Consents: List of required third-party or regulatory consents

5. Appendix 1 - Current Asset Condition: Documentation of the asset's condition at agreement execution

6. Appendix 2 - Transfer Documents: Forms of documents required for transfer upon exercise

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































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Relevant Industries

Real Estate

Manufacturing

Financial Services

Mining

Technology

Energy

Agriculture

Private Equity

Retail

Infrastructure

Relevant Teams

Legal

Finance

Corporate Development

Real Estate

Operations

Risk Management

Compliance

Treasury

Business Development

Asset Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Corporate Lawyer

Real Estate Manager

Asset Manager

Investment Director

Business Development Manager

Risk Manager

Treasury Manager

Corporate Secretary

Property Manager

Compliance Officer

Operations Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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