Put Option Deed Template for Australia

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Key Requirements PROMPT example:

Put Option Deed

"I need a Put Option Deed for a mining equipment sale where my company (ABC Mining Ltd) wants the right to sell $5M worth of specialized drilling equipment to XYZ Equipment Co at a fixed price until March 2025, with the option fee being $100,000 payable upfront."

Document background
A Put Option Deed is a strategic legal instrument used in Australian business transactions to provide downside protection or exit mechanisms for investors and asset holders. This document is particularly valuable in scenarios where parties wish to establish predetermined exit arrangements, such as joint ventures, investment agreements, or asset holding structures. The Put Option Deed sets out the complete framework for the option arrangement, including precise details of the asset(s), pricing mechanisms, exercise procedures, and completion requirements. It must comply with Australian corporate and securities laws, particularly the Corporations Act 2001 (Cth) and ASIC regulations if the option relates to securities. The deed is commonly used in conjunction with shareholders' agreements, joint venture agreements, or as standalone risk management instruments.
Suggested Sections

1. Parties: Identifies and defines the Option Grantor and Option Holder

2. Background: Sets out the context and purpose of the put option arrangement

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

4. Grant of Put Option: Core provision establishing the grant of the put option and its basic terms

5. Option Period: Specifies the duration during which the option may be exercised

6. Option Fee: Details of any payment required for the option grant

7. Exercise of Option: Process and requirements for validly exercising the option

8. Completion: Obligations and process for completing the sale after option exercise

9. Warranties and Representations: Standard warranties about capacity, authority, and title

10. Confidentiality: Obligations regarding confidential information

11. Notices: Requirements for valid notices under the deed

12. General Provisions: Standard boilerplate including governing law, jurisdiction, and amendment procedures

Optional Sections

1. Security: Required if any security is being provided for obligations under the deed

2. Due Diligence: Include if there's a due diligence process before option exercise

3. Third Party Consents: Required if completion depends on obtaining specific third party approvals

4. Tax Provisions: Detailed tax provisions if significant tax implications exist

5. Competition Requirements: Include if transaction may require competition law approvals

6. Restraint of Trade: Include if there are restrictions on parties' business activities

7. Break Fee: Include if there's a fee payable if the transaction doesn't proceed

8. Force Majeure: Include if certain events should excuse performance

Suggested Schedules

1. Option Exercise Notice: Form of notice to be used when exercising the option

2. Asset Description: Detailed description of the asset(s) subject to the option

3. Purchase Price Calculation: Formula or mechanism for determining the purchase price

4. Completion Obligations: Detailed list of tasks and documents required at completion

5. Warranties: Detailed warranties about the asset(s) if extensive

6. Encumbrances: List of any existing encumbrances on the asset(s)

7. Required Consents: List of required third party or regulatory consents

8. Form of Transfer Documents: Templates for documents needed to transfer the asset(s)

Authors

Alex Denne

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

Relevant legal definitions
Relevant Industries

Financial Services

Real Estate

Mining and Resources

Agriculture

Manufacturing

Technology

Infrastructure

Private Equity

Retail

Healthcare

Professional Services

Energy

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Investment

Risk Management

Compliance

Treasury

Business Development

Commercial

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Legal Counsel

Corporate Lawyer

Investment Director

Finance Director

Business Development Manager

Commercial Director

Risk Manager

Company Secretary

Investment Manager

Asset Manager

Transaction Manager

Portfolio Manager

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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