This precedent is an option deed.
This is an agreement where the producer obtains an option to require the execution in its favour of a license agreement or deed of assignment that is annexed to this deed. The precedents “License agreement” or “Deed of assignment” may be used for these purposes.
The main elements of the option deed are:
(a) the payment of an option grant fee by the producer;
(b) warranties by the grantor that it has the right and title to grant the relevant rights and that the grant of these rights will not infringe the rights of any other person;
(c) an undertaking by the grantor that during an agreed option period the grantor will not dispose of or deal with the materials or the rights in the materials in any way that will diminish the producer's option under this agreement;
(d) mutual indemnities between the parties;
(e) an agreed option period; and
(f) a process whereby the producer delivers a notice on the grantor when the producer wants to exercise their option under this agreement.
The agreement also contains provisions relating to confidentiality, publicity regarding the agreement, and other rights that one would expect in an option deed of this kind.
This precedent has been authored for Lexis Nexis by Morris Averill, Solicitor, Averill Media Legal Services.
This document is prepared with the assistance of Specialist Editor Jim Lennon, Special Counsel, Norton Rose Fulbright.