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Exercise clause: Copy, customize, and use instantly

Introduction

An exercise clause defines the terms under which a party can "exercise" a specific right or option within an agreement, typically related to options, warrants, or other time-sensitive decisions. This clause ensures that the party can invoke its rights to take action according to predefined conditions, such as timelines, payment terms, or other stipulations for executing the clause.

Below are templates for exercise clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.

Option to exercise purchase right

This clause allows for exercising the right to purchase.

The buyer has the option to exercise the right to purchase the property described in Exhibit A at any time during the term of this Agreement, by providing written notice to the seller. The buyer must exercise this option within [X] days of receiving notice of the option’s availability.

Exercise of stock option

This clause outlines the exercise of stock options.

The holder of the stock option has the right to exercise the option to purchase [number of shares] of stock in the company, at the price of [price per share], at any time before the expiration of the option period. To exercise the option, the holder must provide written notice and payment of the purchase price.

Exercise of renewal option

This clause grants a renewal option.

The lessee may exercise the option to renew the lease agreement for an additional term of [X] years by providing written notice to the lessor at least [Y] days before the expiration of the current lease term. The terms of the renewal will be the same as the original lease unless otherwise agreed.

Exercise of early termination right

This clause grants the right to terminate early.

The tenant may exercise the right to terminate this Agreement before the expiration of the lease term by providing written notice to the landlord at least [X] days in advance. Upon exercise of this right, the tenant must pay a termination fee of [Y] amount.

Exercise of purchase option in real estate

This clause allows for exercising a real estate purchase option.

The tenant has the option to exercise the right to purchase the property described in Exhibit B at a purchase price of [X]. To exercise this option, the tenant must provide written notice of the intent to purchase to the landlord at least [Y] days before the lease expiration.

Exercise of option to extend contract

This clause allows for contract extension.

The party has the option to exercise the right to extend the contract term for an additional [X] months/years by providing written notice to the other party at least [Y] days prior to the expiration of the current term. The extended term will be subject to the same conditions as the original agreement.

Exercise of rights under an option agreement

This clause specifies the exercise of rights in an option agreement.

The party holding the option to purchase or engage in a transaction as outlined in the Option Agreement may exercise such rights by providing written notice to the other party. The exercise must occur within [X] days of the option becoming exercisable, subject to the terms and conditions of this Agreement.

Exercise of option to buy shares

This clause grants an option to buy shares.

The shareholder has the option to exercise the right to purchase [X] number of shares of stock in the company at a price of [price per share], exercisable within [X] months from the date of this Agreement. The option may be exercised by submitting a written notice and payment of the full purchase price.

Exercise of rights for breach of contract

This clause specifies exercise rights due to breach.

If either party breaches any material provision of this Agreement, the non-breaching party may exercise the right to terminate this Agreement by providing written notice to the breaching party within [X] days. The non-breaching party may also pursue any other remedies available under this Agreement or applicable law.

Exercise of buyback option

This clause allows for a buyback option.

The company has the option to buy back the shares of stock from the shareholder at the fair market value at the time of exercise. The buyback option must be exercised by providing written notice to the shareholder within [X] days of the triggering event.

Exercise of exclusive rights

This clause grants exclusive rights to exercise.

The holder of the exclusive rights under this Agreement may exercise those rights to the exclusion of all other parties by providing written notice to the other party within [X] days. This includes the right to initiate, control, or terminate any actions or processes as outlined in the agreement.

Exercise of right to convert security

This clause allows the exercise of conversion rights.

The holder of the convertible security may exercise the right to convert the security into common stock of the company at any time during the term of this Agreement. The conversion must be done in accordance with the terms outlined in the Security Conversion Agreement.

Exercise of option to claim damages

This clause allows for claiming damages.

The party may exercise the right to claim damages for breach of this Agreement by providing written notice to the other party within [X] days. The notice must specify the damages claimed and any supporting evidence of the breach.

Exercise of withdrawal rights

This clause allows for withdrawal from the agreement.

The investor may exercise the right to withdraw from the investment agreement by providing written notice to the company within [X] days. Upon exercise of the withdrawal right, the investor is entitled to a refund of the investment amount, subject to any applicable penalties or fees.

Exercise of right to audit

This clause allows for an audit right.

The party may exercise the right to audit the books, records, and financial statements of the other party at any time during the term of this Agreement. The audit must be conducted by a third-party auditor chosen by the exercising party, with at least [X] days' written notice to the other party.

Exercise of conversion right under convertible debt

This clause grants the right to convert debt.

The holder of the convertible debt may exercise the right to convert the debt into equity at the agreed-upon conversion rate. The conversion must be exercised by providing written notice to the issuer within [X] days of the debt becoming convertible.

Exercise of call option

This clause grants the right to a call option.

The holder of the call option may exercise the option to purchase the asset described in Exhibit A at the agreed purchase price. The call option must be exercised by providing written notice to the seller within [X] days of the option becoming exercisable.

Exercise of the right to nominate directors

This clause allows the exercise of director nomination rights.

The investor may exercise the right to nominate [X] directors to the board of directors of the company by providing written notice to the company at least [Y] days prior to the annual general meeting. The company shall include the nominated directors in the slate of candidates for election.

Exercise of termination rights for convenience

This clause allows for termination for convenience.

Either party may exercise the right to terminate this Agreement for convenience by providing written notice to the other party at least [X] days in advance. Upon termination, neither party will be liable for any further performance under the Agreement, except for any accrued liabilities.

Exercise of option to withdraw investment

This clause grants the right to withdraw investment.

The investor may exercise the option to withdraw the investment by providing written notice to the company within [X] days of the notice of withdrawal. The withdrawal must be completed as per the terms and conditions set forth in this Agreement.

Exercise of option to renew contract

This clause grants the option to renew the contract.

The lessee may exercise the right to renew the lease agreement for an additional term of [X] years by providing written notice to the lessor at least [Y] days before the expiration of the current term. The renewal shall be based on the same terms and conditions unless otherwise agreed by the parties.

Exercise of option to terminate early

This clause allows early termination.

The party has the right to terminate this Agreement early by providing written notice to the other party at least [X] days in advance. Upon early termination, the party will be liable for any outstanding payments or obligations as of the termination date.

Exercise of option to claim warranty rights

This clause allows the exercise of warranty rights.

The buyer may exercise the option to claim warranty rights for any defective products by providing written notice to the seller within [X] days of discovering the defect. The warranty will cover the costs of repair or replacement, subject to the terms outlined in this Agreement.

Exercise of option to extend exclusive rights

This clause grants an extension of exclusive rights.

The licensee may exercise the option to extend the exclusivity period for [X] additional years by providing written notice to the licensor at least [Y] days prior to the expiration of the current exclusivity period. The extension shall be subject to the terms of the original agreement.

Exercise of the right to convert securities

This clause grants the right to convert securities.

The holder of the convertible securities may exercise the right to convert the securities into equity in the company at the agreed conversion rate. The conversion must be exercised by providing written notice to the company within [X] days of the securities becoming eligible for conversion.

Exercise of the option to cancel orders

This clause grants the right to cancel orders.

The purchaser may exercise the option to cancel any outstanding orders by providing written notice to the seller within [X] days. The purchaser is required to pay any cancellation fees or charges as per the terms of this Agreement.

Exercise of option to participate in an auction

This clause grants the right to participate in an auction.

The party may exercise the right to participate in the auction by providing written notice to the auctioneer no later than [X] days prior to the auction date. The participation will be subject to the auction terms and conditions outlined in this Agreement.

Exercise of option to buy assets

This clause allows for the exercise of the right to buy assets.

The purchaser has the option to exercise the right to buy the assets described in Exhibit A at the agreed-upon price by providing written notice to the seller within [X] days. The terms of the asset purchase will be governed by the conditions outlined in this Agreement.

Exercise of right to buyout

This clause allows for the exercise of the buyout right.

The shareholder may exercise the right to buyout the remaining shares held by other shareholders in the company by providing written notice within [X] days. The buyout will be completed at the fair market value of the shares as determined by a third-party evaluator.

Exercise of right to demand repayment

This clause allows for the exercise of the right to demand repayment.

The lender may exercise the right to demand full repayment of the loan amount if the borrower fails to meet the agreed-upon payment schedule. The lender must provide written notice to the borrower within [X] days of the missed payment.

Exercise of option to withdraw from joint venture

This clause allows for withdrawal from a joint venture.

The party may exercise the right to withdraw from the joint venture by providing written notice to the other party within [X] days. Upon withdrawal, the party must settle any outstanding obligations and return any joint venture property in its possession.

Exercise of option to escalate dispute

This clause allows escalation of a dispute.

The party may exercise the right to escalate any unresolved dispute under this Agreement to a third-party mediator or arbitrator by providing written notice to the other party. The escalation must occur within [X] days of the dispute arising.

Exercise of right to inspect assets

This clause allows inspection of assets.

The buyer may exercise the right to inspect the assets described in Exhibit B prior to the transfer of ownership. The buyer must notify the seller in writing at least [X] days before the scheduled inspection date.

Exercise of option to challenge a decision

This clause allows the right to challenge a decision.

The party has the option to challenge any decisions made by the other party under this Agreement by providing written notice within [X] days. The challenge will be reviewed in accordance with the dispute resolution procedure outlined in the Agreement.

Exercise of option to access confidential information

This clause grants access to confidential information.

The party may exercise the right to access confidential information as specified in Exhibit C by providing written notice to the disclosing party. The information will be provided under the terms of the confidentiality agreement attached to this Agreement.

Exercise of right to enforce terms

This clause allows the exercise of the right to enforce contract terms.

The party may exercise the right to enforce any of the terms and conditions of this Agreement by providing written notice to the other party. If the other party fails to comply with the notice, the exercising party may seek legal remedies available under this Agreement.

Exercise of right to access premises

This clause allows access to premises.

The party may exercise the right to access the premises described in Exhibit D for inspection, maintenance, or other purposes by providing written notice to the other party at least [X] days before the intended visit.

Exercise of right to terminate agreement

This clause allows the termination of the agreement.

The party may exercise the right to terminate this Agreement by providing written notice to the other party within [X] days. Upon termination, both parties will fulfill any outstanding obligations as of the termination date, and the agreement shall be considered void after the specified period.

Exercise of option to change terms

This clause allows the right to modify the agreement.

The party may exercise the option to change any terms of this Agreement by providing written notice to the other party at least [X] days prior to the desired change. The change will take effect once mutually agreed upon and documented in an amended Agreement.

Exercise of the right to reassign duties

This clause grants the right to reassign duties.

The employer may exercise the right to reassign the employee’s duties within the company, with written notice provided at least [X] days before the reassignment. The employee agrees to fulfill the new duties unless the reassignment is unreasonable.

Exercise of right to early access to information

This clause allows early access to information.

The party may exercise the right to request early access to certain project-related information by providing written notice to the other party. This right is subject to the limitations and confidentiality requirements outlined in this Agreement.

Exercise of right to request an audit

This clause grants the right to audit.

The party may exercise the right to conduct an audit of the other party’s records related to this Agreement by providing written notice at least [X] days prior to the proposed audit date. The audit will be conducted during normal business hours.

Exercise of option to extend warranty

This clause grants the option to extend the warranty.

The buyer may exercise the option to extend the warranty on the products described in Exhibit A for an additional [X] months by providing written notice to the seller within [Y] days of the warranty expiration. The extension will be subject to the same terms and conditions as the original warranty.

Exercise of the right to call for a vote

This clause allows calling for a vote.

The shareholder may exercise the right to call for a vote on any issue outlined in this Agreement by providing written notice to all shareholders at least [X] days before the proposed vote date. The vote will take place according to the company’s bylaws.

Exercise of right to initiate legal proceedings

This clause allows the initiation of legal action.

The party may exercise the right to initiate legal proceedings against the other party for breach of this Agreement by providing written notice of the claim. Legal action must be initiated within [X] days after the notice is served.

Exercise of right to redeem shares

This clause allows the redemption of shares.

The shareholder may exercise the right to redeem its shares in the company at the agreed redemption price by providing written notice to the company within [X] days. The company shall redeem the shares within [Y] days of receiving the notice.

Exercise of right to approve changes

This clause allows approval of changes.

The party may exercise the right to approve or reject any changes to the scope of work or contract terms under this Agreement by providing written notice to the other party within [X] days of receiving the proposed changes.

Exercise of right to reclaim assets

This clause allows the reclamation of assets.

The party may exercise the right to reclaim any assets or materials described in Exhibit B by providing written notice to the other party. The reclaim process must be completed within [X] days of the notice.

Exercise of right to alter payment terms

This clause allows alteration of payment terms.

The party may exercise the right to alter the payment schedule for this Agreement by providing written notice to the other party at least [X] days in advance. The new payment terms will be reflected in an amended Agreement.

Exercise of right to initiate a dispute resolution process

This clause grants the right to dispute resolution.

The party may exercise the right to initiate a dispute resolution process under this Agreement by providing written notice to the other party. The dispute will be resolved in accordance with the dispute resolution procedures outlined in this Agreement.

Exercise of right to opt-out of agreement

This clause grants the right to opt-out of the agreement.

The party may exercise the right to opt-out of this Agreement by providing written notice to the other party at least [X] days before the desired opt-out date. The opt-out will be subject to any termination penalties specified in the Agreement.

Exercise of right to cancel transaction

This clause grants the right to cancel a transaction.

The party may exercise the right to cancel the transaction described in Exhibit C by providing written notice to the other party within [X] days. Any deposits or payments made in advance will be refunded in accordance with the cancellation terms.

Exercise of right to initiate performance review

This clause grants the right to a performance review.

The party may exercise the right to initiate a performance review of the other party’s obligations under this Agreement by providing written notice at least [X] days before the review date. The review will assess compliance with the agreed terms.

Exercise of right to claim damages for delay

This clause allows claiming damages for delay.

The party may exercise the right to claim damages for any delay in performance by providing written notice to the other party within [X] days of the delay occurring. The damages will be assessed in accordance with the terms of this Agreement.

Exercise of right to re-evaluate contract terms

This clause allows re-evaluation of terms.

The party may exercise the right to re-evaluate the terms of this Agreement at any point during its term by providing written notice to the other party. The re-evaluation will be subject to negotiation and mutual agreement on the new terms.

Exercise of right to buy additional shares

This clause allows buying additional shares.

The shareholder may exercise the right to buy additional shares of the company at the price of [price per share] by providing written notice to the company within [X] days. The number of shares to be purchased must be specified in the notice.

Exercise of right to request contract amendments

This clause allows the party to request amendments.

The party may exercise the right to request amendments to any section of this Agreement by providing written notice to the other party at least [X] days before the requested amendment takes effect. The amendment will be subject to the approval of both parties.

Exercise of option to purchase additional rights

This clause grants the right to purchase additional rights.

The party may exercise the option to purchase additional rights or privileges described in Exhibit A by providing written notice to the other party. The purchase price and terms will be outlined in an addendum to this Agreement.

Exercise of right to alter delivery schedule

This clause allows altering the delivery schedule.

The party may exercise the right to alter the agreed-upon delivery schedule by providing written notice to the other party at least [X] days before the scheduled delivery date. Any changes will be agreed upon in writing.

This clause grants the right to buyout a partner’s share.

The party may exercise the right to buy out the other partner's share in the partnership at a mutually agreed price. The buyout option must be exercised by providing written notice within [X] days of the triggering event.

Exercise of right to waive penalties

This clause grants the right to waive penalties.

The party may exercise the right to waive any penalties or late fees under this Agreement by providing written notice to the other party. The waiver is subject to the discretion of the party providing the notice.

This clause allows withdrawal of consent.

The party may exercise the right to withdraw its consent for a specific action or provision under this Agreement by providing written notice to the other party at least [X] days before the intended withdrawal.

Exercise of right to claim warranty repairs

This clause allows for claiming warranty repairs.

The buyer may exercise the right to claim warranty repairs for any defective product by providing written notice to the seller. The seller will arrange for repairs or replacements as per the warranty terms.

Exercise of right to contest a decision

This clause allows contesting a decision.

The party may exercise the right to contest any decision made under this Agreement by providing written notice within [X] days of the decision being made. The dispute will be reviewed in accordance with the dispute resolution provisions of this Agreement.

Exercise of the right to renegotiate terms

This clause allows renegotiating terms.

The party may exercise the right to renegotiate any section of this Agreement by providing written notice to the other party within [X] days. Both parties must mutually agree to any changes made to the terms.

Exercise of right to extend warranty coverage

This clause allows extending warranty coverage.

The buyer may exercise the option to extend the warranty coverage for an additional [X] period by providing written notice to the seller. The terms of the extended warranty will mirror the original agreement unless otherwise specified.

Exercise of right to assign contract

This clause grants the right to assign the contract.

The party may exercise the right to assign this Agreement to a third party by providing written notice to the other party. The assignee will be subject to the same terms and conditions as outlined in this Agreement.

Exercise of right to claim damages for breach

This clause grants the right to claim damages for breach.

The party may exercise the right to claim damages resulting from a breach of this Agreement by providing written notice to the breaching party within [X] days. Damages will be assessed in accordance with the terms set out in the Agreement.

Exercise of right to withdraw from the deal

This clause allows withdrawal from the deal.

The buyer may exercise the right to withdraw from the deal by providing written notice to the seller within [X] days. The terms of withdrawal will be governed by the termination provisions outlined in the Agreement.

Exercise of right to modify pricing terms

This clause allows modification of pricing.

The party may exercise the right to modify the pricing terms outlined in this Agreement by providing written notice to the other party. Any modifications will be subject to mutual agreement and documented in a revised contract.

Exercise of right to audit performance

This clause grants the right to audit performance.

The party may exercise the right to audit the other party’s performance under this Agreement by providing written notice at least [X] days before the audit. The audit will focus on compliance with the terms outlined in the Agreement.

Exercise of right to suspend obligations

This clause grants the right to suspend obligations.

The party may exercise the right to suspend its obligations under this Agreement in the event of a material breach by the other party. The suspension must be communicated in writing and will be effective immediately upon notice.

Exercise of right to access confidential information