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Exclusive Option Agreement
"I need an Exclusive Option Agreement under Swiss law for a potential acquisition of a tech startup, with a 6-month option period starting March 1, 2025, and including comprehensive due diligence rights and confidentiality provisions to protect sensitive IP information during the evaluation period."
1. Parties: Identification of the parties entering into the agreement, including full legal names and addresses
2. Background: Context of the agreement, relationship between parties, and purpose of the option arrangement
3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation
4. Grant of Option: Core provision establishing the exclusive option right and its basic terms
5. Option Period: Duration of the option, including start date and end date/conditions
6. Consideration: Option fee or other consideration for the grant of the option rights
7. Exercise of Option: Mechanism and process for exercising the option, including notice requirements
8. Exclusivity Obligations: Scope of exclusivity and restrictions on the grantor during the option period
9. Representations and Warranties: Standard representations regarding authority, capacity, and option subject matter
10. Confidentiality: Obligations regarding confidential information exchanged during the option period
11. Term and Termination: Duration of the agreement and grounds for early termination
12. General Provisions: Standard boilerplate including notices, amendments, governing law, etc.
1. Due Diligence Rights: Used when the option holder needs rights to conduct due diligence before exercise
2. Pre-Completion Obligations: Include when the grantor needs specific obligations between option exercise and completion
3. Anti-Competition: Required when additional competitive restrictions beyond exclusivity are needed
4. Escrow Arrangements: Include if option consideration or documents need to be held in escrow
5. Tax Provisions: Needed for options with significant tax implications or cross-border elements
6. Force Majeure: Include when external events might affect option exercise rights
7. Break Fee: Used when parties want to specify damages for breach of exclusivity
8. Step-In Rights: Include for options relating to ongoing business operations
1. Option Notice Form: Template notice for exercising the option
2. Subject Matter Description: Detailed description of what the option is for (e.g., assets, shares, IP)
3. Consideration Calculation: Formula or methodology for calculating the consideration upon exercise
4. Due Diligence Requirements: List of documents and information to be provided during due diligence
5. Form of Definitive Agreement: Draft of the agreement to be entered into upon option exercise
6. Corporate Approvals: Required corporate authorizations and resolutions
7. Competing Business Definition: Detailed description of activities covered by exclusivity/non-compete provisions
Authors
Real Estate
Mergers & Acquisitions
Technology
Manufacturing
Intellectual Property
Financial Services
Energy
Mining
Pharmaceuticals
Infrastructure
Telecommunications
Legal
Business Development
Corporate Development
Finance
Compliance
Commercial
Mergers & Acquisitions
Real Estate
Strategy
Risk Management
Legal Counsel
Corporate Lawyer
Business Development Manager
Chief Legal Officer
Chief Financial Officer
Commercial Director
Mergers & Acquisitions Director
Real Estate Director
Investment Manager
Contract Manager
General Counsel
Compliance Officer
Transaction Manager
Corporate Development Director
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