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Call Option Deed Template for Hong Kong

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Key Requirements PROMPT example:

Call Option Deed

"I need a Call Option Deed under Hong Kong law for the purchase of 25% shareholding in a technology startup, with the option exercisable until March 15, 2025, and including tag-along rights for minority shareholders."

Document background
The Call Option Deed is a crucial instrument in Hong Kong's business and financial landscape, commonly used in corporate transactions, real estate deals, and securities trading. It provides a legally binding framework for granting purchase rights over various assets, from company shares to real property. The document must be executed as a deed to ensure enforceability, particularly important under Hong Kong law where consideration may not be immediately present. The Call Option Deed typically includes comprehensive terms covering option exercise procedures, price mechanisms, conditions precedent, and completion requirements. It must comply with Hong Kong's legal requirements for deeds and, where applicable, financial regulatory framework. This document is particularly valuable in strategic investments, corporate restructuring, and real estate transactions where parties seek to secure future purchase rights while managing present obligations.
Suggested Sections

1. Parties: Identification of the Grantor (option seller) and Grantee (option buyer)

2. Background: Context of the option arrangement and relationship between parties

3. Definitions: Key terms including Option Period, Strike Price, Underlying Assets, Exercise Notice

4. Grant of Option: Core provision granting the call option rights to the Grantee

5. Option Period: Duration of the option and any conditions affecting the exercise period

6. Exercise Price: Specification of the strike price and payment terms

7. Exercise Mechanism: Process and requirements for exercising the option

8. Completion: Obligations and process following option exercise

9. Representations and Warranties: Standard and specific warranties regarding the underlying asset and authority to grant the option

10. Covenants: Ongoing obligations of the parties during the option period

11. Termination: Circumstances and process for early termination

12. Notices: Communication requirements and contact details

13. General Provisions: Standard boilerplate including governing law, jurisdiction, and amendments

14. Execution: Formal execution blocks meeting Hong Kong deed requirements

Optional Sections

1. Security Arrangements: Required if there is any security being provided for the option obligations

2. Regulatory Compliance: Include if the option involves regulated securities or activities

3. Tag-Along Rights: Include if other shareholders should have the right to join in the sale

4. Drag-Along Rights: Include if the option holder should have the right to force other shareholders to join the sale

5. Anti-Dilution Provisions: Include for company shares to protect against dilution during the option period

6. Conditions Precedent: Include if the option grant is subject to certain conditions being met

7. Assignment: Include if transfer of the option rights needs specific regulation

8. Tax Provisions: Include specific tax-related provisions if significant tax implications exist

Suggested Schedules

1. Schedule 1 - Form of Exercise Notice: Template notice for exercising the option

2. Schedule 2 - Description of Option Assets: Detailed description of the assets subject to the option

3. Schedule 3 - Completion Requirements: Detailed list of completion deliverables and requirements

4. Schedule 4 - Warranties: Detailed warranties relating to the option assets

5. Schedule 5 - Regulatory Approvals: List of required regulatory approvals if applicable

6. Appendix A - Copy of Underlying Asset Documents: Relevant documents relating to the option assets (e.g., share certificates)

7. Appendix B - Valuation Report: If relevant, third-party valuation of the option assets

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries

Financial Services

Real Estate

Private Equity

Venture Capital

Manufacturing

Technology

Mining and Resources

Retail

Healthcare

Professional Services

Relevant Teams

Legal

Corporate Finance

Mergers & Acquisitions

Investment

Compliance

Risk Management

Real Estate

Corporate Secretarial

Business Development

Treasury

Relevant Roles

Legal Counsel

Corporate Lawyer

Investment Director

Chief Financial Officer

Company Secretary

Investment Manager

Commercial Director

Business Development Manager

Real Estate Director

Compliance Officer

Risk Manager

Corporate Finance Manager

Managing Director

Chief Executive Officer

Property Manager

Industries







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