Effect of Exercise of Option Clause Samples
The "Effect of Exercise of Option" clause defines the legal and practical consequences that occur when a party chooses to exercise an option granted under a contract. Typically, this clause outlines what rights or obligations are triggered upon exercise, such as the commencement of a lease term, the purchase of additional goods, or the extension of a service agreement. For example, if a tenant exercises an option to renew a lease, this clause would specify that the renewal period begins and under what terms. Its core function is to provide certainty and clarity about the next steps and the binding nature of the parties' commitments once the option is exercised, thereby preventing disputes about the effect of such an action.
Effect of Exercise of Option. Upon the exercise of the Option, Seller and Buyer shall be bound by an agreement for the sale and purchase of the Property upon the te1ms and subject to the conditions set forth in this Agreement.
Effect of Exercise of Option. The exercise by Buyer of the option herein shall have no effect on any claims or controversies with respect to the Coal Sales Agreement except as provided herein.
Effect of Exercise of Option. If the Options granted in Sections 5.3 and 5.4 hereof is or are properly exercised, each and every term and condition of this Lease shall apply during the term of each of the Options which are exercised except as specifically provided herein.
Effect of Exercise of Option. If the Authority exercises the Option in accordance with clause 19.1:
(a) the Contractor is bound to sell to the Authority or the authority's nominee, and the Authority or its nominee is bound to purchase from the Contractor, the School Bus for the Purchase Price;
(b) completion of the purchase is to occur on the later of:
(i) one month after the date the Option Notice is regarded as given and received under clause 22.8 in this Contract; and
(ii) one month after the date the Valuer has determined the Purchase Price; and
(c) where the Option is exercised with respect to a School Bus which is subject to a Security Interest:
(i) the Contractor must procure the discharge of the Security Interest promptly and in a manner satisfactory to the Authority; and
(ii) the Contractor must authorise the Authority to pay the full amount of the Purchase Price directly to the secured party.
Effect of Exercise of Option. Upon Buyer's delivery of the Exercise Notice to Seller, Buyer shall be deemed to have waived all its due diligence requirements and to have accepted the Property in accordance with the terms of this Agreement with title subject to the Permitted Exceptions as determined under Section 2.3 hereof.
Effect of Exercise of Option. The other provisions of this Leasehold Improvements Agreement notwithstanding, in the event that Tenant exercises the "First Option" (as that term is defined in the Option Agreement) in accordance with the provisions of the Option Agreement, Landlord shall assign to Tenant the agreements required to be so assigned by the Option Agreement, and Landlord may thereafter cease to perform any obligation of Landlord pursuant to this Leasehold Improvements Agreement with respect to the design and construction of any improvements on the Phase I Land or the Phase II Land other than any obligations of Landlord with respect to obtaining Necessary Approvals.
Effect of Exercise of Option. If the Option is exercised during the period in which the entry in the shareholders registry is prohibited, the Option Shares issued or otherwise obtained by such exercise shall not have the voting rights at the shareholders' meeting during such prohibition period.
Effect of Exercise of Option. Notwithstanding any other provision of this Agreement, if Seller shall exercise Seller's Option to Terminate, the Escrow Holder shall refund to Buyer all deposits theretofore paid by Buyer pursuant to this Agreement and Seller shall pay any fees charged by Escrow Holder as the result of the cancellation of escrow.
Effect of Exercise of Option. Upon the exercise of the Option as provided in this Article II, the parties shall proceed with the Merger in accordance with Article III of this Agreement.
Effect of Exercise of Option. An exercise of the Option, in whole or in part, will have no effect on Employee’s right to accrual of Excess Dividends or Share Units under this Section 6, and will have no effect on the timing of settlement of vested Share Units under this Section 6.