Optionors Covenants Clause Samples
The "Optionor's Covenants" clause sets out the specific promises and obligations that the optionor (the party granting an option, typically to purchase property or assets) must fulfill during the term of the option agreement. These covenants may include maintaining the property in good condition, refraining from encumbering or selling the property to third parties, and providing necessary information or access to the optionee. By clearly outlining the optionor's duties, this clause ensures the optionee's interests are protected and that the subject of the option remains in the agreed-upon state, thereby reducing the risk of disputes or loss of value during the option period.
Optionors Covenants. The Optionor will:
(a) not, either during the option period or thereafter in the event of exercise of the Option by the Optionee, sell, assign, alienate, transfer or in any other way deal with its interest in the Property or this Agreement save and except as provided for herein;
(b) at its sole cost and expense, carry out all reclamation work required as a result of exploration and development work conducted on the Property prior to the Optionee commencing to incur Expenditures, including, without limitation, the maintenance of reclamation bonds which may be lodged at the date hereof until such time as the Option is exercised, and remove or take remedial action with regard to any materials released by the Optionor or its contractors and agents, into the environment at, on or near the Property, prior to the Optionee commencing to incur Expenditures, for which any reclamation, removal or remedial action is required pursuant to any law, regulation, order or governmental action provided that:
(i) no such reclamation, removal or remedial action shall be taken except after reasonable advance written notice has been given to the Optionee, and
(ii) any such reclamation, removal or remedial action shall be undertaken in the manner so as to minimize any impact on the Optionee's operations on the Property;
(c) at all times retain any and all liabilities arising from such prior operations conducted on the Property and from the handling, treatment, storage, transportation or disposal of environmental or similar contaminants on or near the Property by the Optionor or by any of the Optionor's contractors or agents, save and except that any of such liabilities which are not the subject of active or required reclamation, removal or remedial action at the time of exercise of the Option will be assumed by and will become the responsibility of the Optionee as of and from the time of the exercise of the Option.
Optionors Covenants. As soon as practicable after the execution of this Agreement, the Optionor will, at the expense of the Optionee, cause the transfer to Chorti of any of the Properties that are not already held by Chorti, such that Chorti becomes the registered holder of the each of the Properties. As soon as practicable after the Optionee has completed its obligations under Section 2.1, the Optionor will execute and deliver the Trust Agreement to each of the Optionee and Trustco. The Optionor will forthwith provide to the Optionee evidence of the completion of its obligations under this Section 2.2.
Optionors Covenants. From the Exercise Date until the earlier of the Close of Escrow or the termination of this Agreement, Optionor covenants to Optionee as follows:
(i) Optionor shall maintain the Property in the same condition and manner as existed on the Exercise Date, damage by casualty and reasonable wear and tear excepted.
(ii) Optionor shall pay all bills and invoices for labor, material and services supplied to the Property prior to the Close of Escrow, except to the extent arising from Optionee’s activities on the Property.
(iii) Optionor shall maintain in full force any insurance coverage pertaining to the Property, either through the existing insurance policies or replacement policies.
(iv) Optionor shall not enter into any new contracts or agreements, or modify any existing contracts or agreements relating to the Property for a term beyond the Close of Escrow without the prior written consent of Optionee, which Optionee may withhold in its sole and absolute discretion.
Optionors Covenants. The Optionor shall:
(a) maintain in good standing sufficient insurance coverage of a reasonable owner in respect of the Property until the Closing Date; and
(b) grant authorizations reasonably requested by the Optionee to authorize municipal and other similar authorities to release information regarding the Property (provided that such authorization shall not permit any governmental inspection of the Property).
Optionors Covenants. Optionor covenants that, commencing on the date ---------------------- hereof and continuing through the term of this Option the Station shall be operated in accordance with the covenants set forth in Section 5.1 of the Asset ------------ Purchase Agreement, which covenants are incorporated herein by reference.
Optionors Covenants. The Optionor agrees with the Optionee that when --------------------- the Option is exercised:
(a) subject to the Option granted herein, the Optionor shall not sell, transfer, enter into any agreement or option or any right or privilege capable of becoming an agreement or option for the purchase from the Optionor of any of the Patents.
Optionors Covenants. Optionor hereby represents, warrants and covenants that during the Option Period, Optionor shall reserve that number of shares necessary to fulfill its obligations hereunder.
Optionors Covenants