Cancellation policy

Purchase Option Cancellation Policy & Process Document

Effective Date: September 13, 2026

1. Overview & Purpose

This policy governs the standard operating procedure for canceling a Purchase Option Agreement between Catalyst ("Seller") and the option holder ("Optionee"). The purpose of this policy is to establish a clear, standardized procedure for the voluntary or involuntary termination of purchase option rights, ensuring compliance with governing contractual terms and protecting the rights of both parties.

2. Cancellation Eligibility & Triggers

A Purchase Option may be canceled under any of the following circumstances:

• Voluntary Optionee Cancellation: The Optionee chooses not to exercise the option prior to the expiration date.

• Mutual Agreement: Both parties execute a written termination agreement agreeing to release each other from option obligations.

• Expiration of Term: The option window expires without the Optionee delivering an official Notice of Exercise and required deposit.

• Default or Breach: The Optionee fails to fulfill underlying obligations (e.g., non-payment of option fees, breach of lease terms in lease-option agreements).

3. Cancellation Process & Steps

Step 1: Submission of Cancellation Notice

To initiate a voluntary cancellation, the requesting party must submit a written Notice of Option Cancellation to Catalystwearsclothing@gmail.com or mail it to the address listed in Section 6.

Step 2: Verification & Status Review

Upon receipt of the notice, [Company Name] will review the active option contract within [3–5] business days to confirm:

• Active option window status and expiration date.

• Account standing and fulfillment of all preliminary obligations.

• Refundability status of any option fees paid.

Step 3: Execution of Cancellation Agreement

Both parties will sign an official Option Cancellation & Release Form acknowledging the termination of the purchase option and waiving future claims to the underlying property or asset.

4. Treatment of Option Fees & Deposits

Fee Type	Policy Standard	Terms
Option Consideration Fee	Non-Refundable	Non-refundable unless explicitly stated otherwise in the master contract.
Earnest Money Deposit	Refundable / Conditional	Returned to Optionee within [14–30] days of mutual cancellation sign-off, less any outstanding administrative or breach damages.
Accrued Credits	Forfeited	Rent or purchase credits applied toward the eventual purchase price are forfeited upon cancellation.

5. Effect of Cancellation

Upon execution of the cancellation:

• All rights, titles, and interests of the Optionee in and to the purchase option are permanently extinguished.

• The Seller retains full ownership rights to sell, lease, or transfer the underlying property/asset to third parties without further obligation to the Optionee.

6. Notice & Contact Information

All formal notices regarding option cancellations must be directed to:

• Company Name: Catalyst

• Department: Legal & Contracts Department

• Email: Catalystwearsclothing@gmail.com

• Mailing Address: 10141 Parlett Pl.